Nexo - "Earn 8% dividend a year with no risks"

[LeGaulois]

...

You know people criticize Nexo with the argument that you don't hold the funds, but they themselves use a bank account where it's exactly the same thing (and even worse knowing that with a bank you can't empty your account overnight.)

Since Nexo is based on Switzerland I suppose the company is regulated there but since it's powered by Credissimo I'm not sure. And this sentence from the FAQ makes me think it's regulated by different agencies, which makes sense if they operate in different countries

Its global operations are powered by the profound lending experience of Credissimo, a leading FinTech Group serving millions of people across Europe for over 10 years, while multiple banking and financial service regulators.

I remember an article not long ago talking about the average amount invested in this platform. It showed that most people aren't the typical average Joe, not the middle class I mean. And you won't see "rich guys" posting reviews on Trustpilot

[buwaytress]

@stompix yeah that's the trouble, shilling. But a notable lack of scam cries either after 2 years makes me wonder. I opened a suppoelrt query to ask for their licensing details but no reply yet.

And it is actually 8% on bitcoin that I can see from my dashboard. Actually 8% btc and 2% in nexo shitcoin so 10%.

Curious to know if anyone actually tried. Might just take the dip with a small amount for a year.

[TheUltraElite]

I remember an article not long ago talking about the average amount invested in this platform. It showed that most people aren't the typical average Joe, not the middle class I mean. And you won't see "rich guys" posting reviews on Trustpilot

The point is that the majority of the crypto "venturers" are wanna-be get rich quick mentality people. They are not as diligent as traditional traders of wall street and others which is the reason why we see so much FOMO, among other factors.

I consider these crypto lending startups to be what is having a similar outcome of mutual funds though they are completely different things. Mutual funds go to stock, bonds and gold market investments while crypto lending money goes to borrowers who will be going for the crypto market or gambling. Even then, I am more inclined to keep my coins under my control because it is crypto after all, loads of legal gray areas and points that can end up being against in based on your country's legal status of bitcoin.

Reviews are not to be trusted. Every business makes some allocation to social media buzz and they drive these fake reviews. In general a review is always biased, unbiased reviews are very very rare.

[buwaytress]

You know people criticize Nexo with the argument that you don't hold the funds, but they themselves use a bank account where it's exactly the same thing (and even worse knowing that with a bank you can't empty your account overnight.)

Since Nexo is based on Switzerland I suppose the company is regulated there but since it's powered by Credissimo I'm not sure. And this sentence from the FAQ makes me think it's regulated by different agencies, which makes sense if they operate in different countries

I remember an article not long ago talking about the average amount invested in this platform. It showed that most people aren't the typical average Joe, not the middle class I mean. And you won't see "rich guys" posting reviews on Trustpilot

I'm all about "not your keys not your bitcoin" as I said, but I also believe in spreading my risk. I still hold a majority of my savings in a normal bank account insured and guaranteed from loss. I know promises are worth nothing but I rather think having some of it in there (not even earning interest btw) is just being practical. I am ALL for Bitcoin but I don't have the luxury of putting everything at stake on something that to me is still very much a (so far very successful) experiment. It would probably be a lot more different if I were single and alone in this world, but alas, life means I have responsibilities to many other people =)

And yeah, I imagine it's definitely not middle class on Nexo, and those on trustpilot are the plebs like me...

BitGo, for example, the ones insuring Nexo, are also reportedly the playground of the super rich. I mean, plebs like us won't even get a call back from BitGo if we asked for a quote on their vault services I guess!

[temp2]

nexo is already scam. "it will take around a month to restore the USDT"

[buwaytress]

Thought to update here, seeing as I saw another thread on Nexo in Service Discussion. I haven't changed my mind about them (neutral, leaning towards wary), the model appears to work. Lend money, use overcollaterised loans, and you can always pay people back and bank on crypto doing better in the future.

As TryNinja wondered here, I'm also curious to know what happened during Black Thursday. MakerDAO and others had to liquidate a lot of lenders and are trying to make them whole again but I know some people were really pissed with defi platforms in that time.

Right so against my better judgment, and perhaps since I anyway do trust banks with my fiat (yay), I signed up with Nexo around the time I started asking in this thread and deposited all the USDT I had from cumulative small client payments. Interest racks up on the next full day, though it's 8% and not 10% as advertised. I clarified that you actually get 25% more interest (so 10% instead of 8% for fiat/stablecoins and 5% instead of 4% for crypto) IF at least 10% of your fiat value holdings are in Nexo internetcoins. So, nope.

I'll probably leave that in there, it's not so much I actually don't hold stablecoins but you never really refuse any form of payment you get, so maybe I see a healthy 8% interest after a year there. I'll be sure to update.

Oh, also applied for their card. Seems like I'm in a waiting list.

BTW, sharing a selected response from Customer Support "Daniel":

Question: Is this $100 million an overall insurance or is it per account and per instance? It doesn't seem like much to be honest, and where can we find information on how much deposits NEXO has already?

Answer: Even if we hold more than 100 Million in custody, BitGo cannot be compromised to the level of all assets been stolen with a single attack. BitGo does not keep all of their cold wallets at one place but in multiple vaults in different banks which guarantee their safety with different insurance policies.
With the level of security that BitGo has, a breach of that size is as close to impossible as it can be.
What I am saying is that even if a breach ocurred there isn't a risk of loosing funds in a amount as great as $100M due to the way BitGo manages their security.
This is why you can be sure that all of your assets will be insured at 100%.


So, it is ONLY $100M insured. They feel certain BitGo can't lose so much, but now you know, they really only do have that much insured. Probably not even 10% of total funds in deposits if we believe there are billions locked up in Defi now.

[slaman29]

nexo is already scam. "it will take around a month to restore the USDT"

Where did you get this from? I looked up their website and couldn't find anything like this on any announcement. And why would they be scamming if it's just about restoring Tether wallet? A lot of exchanges do that all of the time. No big deal:)

[Karartma1]

I personally use Nexo since 6 months. I put a few 0.coins in there to try it out: it's less than 2% of my holdings. I find it a way to stack sats.
Of course I know that they hold and control my funds and I have accepted that.
So my only advice is don't put all your eggs in one basket. If you go all-in on Nexo or any other centralized entity then you know you are basically giving away your funds to a third-party.
Do accurate research on every service you intend to use.

[bearexin]

I have been using the Nexo platform for a year now. The project is highly trusted, well managed and handled by a team of professional. Everything is quite systematic. It is true that Nexo pays 8% dividend interest on all the stable coins such as USDT (Tether) etc. The stable coins help the platform to maintain higher liquidity for its customers.

The platform provides crypto-backed loans starting at 5.9% APR. It also pays 30% of its net profits as dividend to all the NEXO holders based on the quantity of NEXO coins then hold into the wallet and also has loyalty reward. I would recommend you to check the platform out.

[wiss19]

While 8% sounds really good, it's suspiciously quite high though.

Its 8% per year. Actually its only 6.5% per year. Thats like regular bank accounts.

So thats a pretty small amount considering the risk that you are taking to put your asset into a third party lending platform and allowing them to lend it to users. It might seem lucrative as a source of passive income - let your money grow but most of the time it ends up with problems since here on the internet nobody is going to investigate properly and judge in case a theft of funds happen. These sections are grey enough to allow shady companies to take advantage.

Nonetheless, I am not saying that NEXO is a scam, but I would tread carefully with my coins. I prefer to look them with me rather than invest them. But those who want to take risk are free to do so. Let them judge the level of security measure that NEXO takes.

Exactly. That’s 8% per annum which is pretty less considering the fact that bank pays the same percentage of interest to a fixed deposit (savings) account. People who just want to hold on to stable coins for a while until they wish to enter the crypto market again can opt for such scheme else it’s not that useful unless you want a crypto backed loan. Daily traders earn 5 to 6 times more amount on daily basis by short term trades. Nexo overall is a secure and trusted platform, but the interest rate should’ve been higher considering the fact that it is for per annum and not per month.

[wtfjohan]

While 8% sounds really good, it's suspiciously quite high though.

Its 8% per year. Actually its only 6.5% per year. Thats like regular bank accounts.

So thats a pretty small amount considering the risk that you are taking to put your asset into a third party lending platform and allowing them to lend it to users. It might seem lucrative as a source of passive income - let your money grow but most of the time it ends up with problems since here on the internet nobody is going to investigate properly and judge in case a theft of funds happen. These sections are grey enough to allow shady companies to take advantage.

Nonetheless, I am not saying that NEXO is a scam, but I would tread carefully with my coins. I prefer to look them with me rather than invest them. But those who want to take risk are free to do so. Let them judge the level of security measure that NEXO takes.

Exactly. That’s 8% per annum which is pretty less considering the fact that bank pays the same percentage of interest to a fixed deposit (savings) account. People who just want to hold on to stable coins for a while until they wish to enter the crypto market again can opt for such scheme else it’s not that useful unless you want a crypto backed loan. Daily traders earn 5 to 6 times more amount on daily basis by short term trades. Nexo overall is a secure and trusted platform, but the interest rate should’ve been higher considering the fact that it is for per annum and not per month.

Well I don't know what country you live in - but here in Northern Europe the banks pay about... 0% interest on a savings account. You might get lucky and find some odd bank that pays 3-4% annually - if you lock the fiat for 3-5 years. Lets not forget that fiat also has the ability to deflate just as much as a crypto currency or a stock..
So 8% with the option to put 10% of the savings into tokens that payout yearly dividends and more for holding it longer sounds pretty nice to me; it just happens Nexo is paying out their 30% of the net profit today the 15th August & soon we'll see how much of a return they hold; as we don't know how many will receive dividends etc. What I'm personally looking forward to is their promised card that you only need to hold crypto to use and spend fiat with at a fixed 5.9% annual interest rate; this will allow anyone to hold crypto and spend for a few percent of interest in the case the assumption is prices will rise higher than 5.9%, right? That's a great way for me to use Nexo as a service provider... But it's been about a year now and they still havent shipped out any cards to my knowledge; so it's kind of wishing for the best and watching how the company progresses & if they actually surpass dreaming and push out the plastic cards. I'm about 80-90k in a backlog of requests to recieve a card so...

Hopefully they start working on that card of theirs with their "fresh" influx of funds when they officially get 70% net profit "re-investment" on dividend payouts (Nexo to Distribute $6,127,981.39 in Dividends today).

By the way the ARN of cryptos with nexo is 4-5%, and 8-10% with stablecoins... You can borrow about 40-50% of your deposited btc and such cryptos, and up to nearly 80-90% of stablecoins iirc. Not too bad if you wanted to spend some of your capital but wait til your trades gained some extra profits from that same capital at just 5.9% interest.

[reliable]

I personally use Nexo since 6 months. I put a few 0.coins in there to try it out: it's less than 2% of my holdings. I find it a way to stack sats.
Of course I know that they hold and control my funds and I have accepted that.
So my only advice is don't put all your eggs in one basket. If you go all-in on Nexo or any other centralized entity then you know you are basically giving away your funds to a third-party.
Do accurate research on every service you intend to use.

This is valuable suggestion of not putting too much stake under 1 thing only. And, not to invest too much as well where the control is not in your hand. Might be you may get better 1-2% extra than investing elsewhere but always ensure it is being done in a right manner and the risk is limited.

[ipez]

Hello, you can share the results of the received devidends

[aesma]

So, I don't know if this is new since I only signed up recently (someone offered to buy nexo tokens at a high price so I bought them and sold to him), but nexo also offers to earn interest on fiat money. More specifically Euro and Pound. The same 8/10% as with stablecoins. You need to do the KYC, however.

Needless to say this is a very high return in Europe for something supposedly without risk.

[TheUltraElite]

Needless to say this is a very high return in Europe for something supposedly without risk.

If you are fine with doing a KYC with the company and entering the interest payment scheme then it is all good for you.

The speculation is more of the fact that a third part holding your coins is not a secure way to keep the coins. After all this is nowhere close to a physical bank where they keep the money in vaults or use it to lend money to others. Government regulated banks have some obligations while I am not sure what Nexo has to do in case their offered loans are being defaulted and the collateral involved is depreciating as well.

Dont let the "passive income" fool you into giving your personal details to some anonymous organization. In that sense it would be better to give the money to a bank that you know and trust.

[aesma]

I've invested in a 10%/year scheme some years ago, it was in real estate, the company was serious (still exists), if everything went well it was fine, if there were some hiccups you could earn less than promised, and if it went badly wrong you could lose your investment.

In my case it went mostly well and I got the 10% return, then of course the taxman took half of it.

That's my way to say you can't have good returns without some risks. But you're right, I'm not going to jump head first, doing some more research.

[Oilacris]

Needless to say this is a very high return in Europe for something supposedly without risk.

If you are fine with doing a KYC with the company and entering the interest payment scheme then it is all good for you.

The speculation is more of the fact that a third part holding your coins is not a secure way to keep the coins. After all this is nowhere close to a physical bank where they keep the money in vaults or use it to lend money to others. Government regulated banks have some obligations while I am not sure what Nexo has to do in case their offered loans are being defaulted and the collateral involved is depreciating as well.

Dont let the "passive income" fool you into giving your personal details to some anonymous organization. In that sense it would be better to give the money to a bank that you know and trust.

Well said and i would rather do the same than on trusting up these guys!

They might be known on this crypto world but that wont really be enough to convince me on letting my funds do sit for a year and just waiting for that 8%-10% return annually.

If you do really take some considerations on thinking up into those situations that you had mentioned then you would really have that in mind on how they would really compensate such loss
for them to be able to still give on the interest that they had promised into its users.

Good thing for them if market is rising up which we can presume that it did really increase on what they've been holding on but if the market would go to the opposite way? then whats next?

[bitcoinfuck]

https://www.trustpilot.com/review/nexo.io?languages=en&stars=1


STAY AWAY FROM NEXO, THEY FAKE ALMOST EVERYTHING

[riverdip]

https://www.trustpilot.com/review/nexo.io?languages=en&stars=1


STAY AWAY FROM NEXO, THEY FAKE ALMOST EVERYTHING

agreed nexo is pure scam, they liquidate accounts instantly

[coupable]

https://www.trustpilot.com/review/nexo.io?languages=en&stars=1


STAY AWAY FROM NEXO, THEY FAKE ALMOST EVERYTHING

agreed nexo is pure scam, they liquidate accounts instantly

Despite i don't believe in trustpilot scores, as they can be fake, there are only 28 negative reviews for NEXO out of 1406 in total (less than 2%). And the cases mentioned in the comment you quoted (latest five reviews made in the ssame day for the same issue) are all about how the NEXO price dropped and they received a reply from NEXO officially.
I am not defending NEXO here, but the project seems to be solid enough to maintain the good position in the market. If you have proofs against it, just post them and let the community make the right judgement.