https://nexo.io/ ?

[davesmurf]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

[rdluffy]

I don't know this service, but look, everything I saw some service offering some number of %, guaranteed, it's not ended well
Be careful, don't waste your money or put at risk, seriously, 8% is a lot to offer

[OmegaStarScream]

This has been discussed already: https://bitcointalk.org/index.php?topic=5160150.0

Alternatively, I suggest looking at the ANN thread but you might only find people who believe in the project so, whatever you're going to read may be biased.

[Slow death]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

Is 8% per year, wouldn't it be more beneficial for you to buy bitcoin and Hold for a year?

If you buy bitcoin, the bitcoin is in your wallet, where you will have full control, and you will still benefit if the price increases too much. I don't see reason for you to use this site and risk one day the site close and you lose your coins

I don't know this service...

strange that I saw 233 comments speaking well of this site:

https://www.trustpilot.com/review/nexo.io

I also found another review here:

https://themoneymongers.com/nexo-loan-review/

and this excellent comment has not yet had adequate answer:

The answer I try to find is what do they do with the stable coins after you deposit it on their platform to gain interest? It seems to me they have to do something with it. How else can they offer you 6.5% interest on it if they didn’t? Bitgo insurance is only valid when the crypto is stored in their cold storage solution. So how can it be in their cold storage solution and do nothing and still produce 6.5% interest? And if they do lend out the stable coins or do something else with it how can it still be insured?

I asked this at the customer support but they can’t seem to answer this question when I asked them directly. In their white paper, it seems as they use the deposits for interest gains to lend out to the borrowers again but customer service wasn’t able to confirm that either so I’m hoping to find an answer to this.

[AdolfinWolf]

and this excellent comment has not yet had adequate answer:

The answer I try to find is what do they do with the stable coins after you deposit it on their platform to gain interest? It seems to me they have to do something with it. How else can they offer you 6.5% interest on it if they didn’t? Bitgo insurance is only valid when the crypto is stored in their cold storage solution. So how can it be in their cold storage solution and do nothing and still produce 6.5% interest? And if they do lend out the stable coins or do something else with it how can it still be insured?

I asked this at the customer support but they can’t seem to answer this question when I asked them directly. In their white paper, it seems as they use the deposits for interest gains to lend out to the borrowers again but customer service wasn’t able to confirm that either so I’m hoping to find an answer to this.

I think the question could've been worded a bit better, as it's quite obvious that your capital is probably used to collateralize/give out these loans. In what way however your coins are insured, are indeed really interesting, and very unclear.

Bitgo insurance is only valid when the crypto is stored in their cold storage solution. So how can it be in their cold storage solution and do nothing and still produce 6.5% interest?

This question is indeed a bit more interesting, although i think the whole Bitgo is mostly a marketing ploy.

Or they must have some connection to a bank which allows them to lend capital to THEM over your collateral that is stored in Bitgo's cold storage. Which i doubt with Bitcoin (very unstable), usage of a stablecoin could make things a bit more likely, but still a pretty slim chance of this actually being the case. (And really, should not be assumed!)

The weird wording of all these companies using Bitgo to "insure customer funds" instantly makes them sketchy to me. It'd tread really careful with any of these loaning sites that offer a fixed interest rate.

[mk4]

Though I personally am not planning on using these types of services anytime soon(I'm fine with bitcoin being a long-term investment without dividends), but if there's one such service I would use, it'd probably be BlockFi. It's simply just far more reputable and they're storing their funds through Gemini(which I think they're taking security seriously, though again, there's always risks). I would suggest staying away from lending services that aren't well-known and reputable.

[milewilda]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

I hate any services that do give out guaranteed into their investment.
8% for a year sounds realistic though but as other commenting on here its more worthy if we do just hold up our own coins
and possibly earn more than 8%. Trusting new service isnt bad but its a wiser move to choose those reputable ones.

Alternatively, I suggest looking at the ANN thread but you might only find people who believe in the project so, whatever you're going to read may be biased.

We can presume specially that is a moderated thread.Any negatives will be deleted out.

[leowonderful]

Has anyone seen anything on the Nexo site that would lower APY for  balances with/over a certain amount of Bitcoin like what BlockFi does (lowering to 2.2% APY for accounts over 10BTC)? 8%'s definitely more than what BlockFi offers, and if you're willing to take the risks of putting your funds in their hands it might not be the worst option out there for earning interest. I wouldn't personally ever use any of these platforms, but it does look interesting.

[shaw1]

Here is the Bitgo press release:
https://www.bitgo.com/marketing/img/pressRelease/BitGo_02-19-19_Press_Release_insurance.3f5c4f9bc52144ac.pdf

It covers:

● Third-party hacks or theft of private keys
● Insider theft by employees of private keys
● Physical loss or damage of private keys

I wouldn't trust it. What happens if it turns out they are using the borrowed funds to trade?
Wouldn't hit any of the covered criterion, so it seems like investors would just be out of luck.

I'm sure there are dozens of ways to lose money without it being theft, or loss of keys.

The insurance seems worthwhile only for provable theft, or a dog eating the paper wallet holding all the money.
At the end of the day 8% of nothing would still be nothing, and you only truly have bitcoin if you have the private key.

[timerland]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

Is 8% per year, wouldn't it be more beneficial for you to buy bitcoin and Hold for a year?

Not really - this logic is flawed, because your just automatically assuming that BTC is going to go up every year, which is usually not the case. We saw a huge market crash the last year, and this site is promising guaranteed returns of 8 percent a year. Just give them your money and you'll make it back.

This site doesn't actually look so bad, and I think it works off something like this.

- They raise capital via user funds, by offering pretty high rates
- They then use the funds they raised to fund safe high interest loans, that have collateral behind it.
- They make money off the spread.

Look at the stats, interest rates are capped at 8 percent a year and the credit they offer is min 8 percent. Actually seems like a pretty good idea...

[Rodeo02]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

Is 8% per year, wouldn't it be more beneficial for you to buy bitcoin and Hold for a year?

Not really - this logic is flawed, because your just automatically assuming that BTC is going to go up every year, which is usually not the case. We saw a huge market crash the last year, and this site is promising guaranteed returns of 8 percent a year. Just give them your money and you'll make it back.

This site doesn't actually look so bad, and I think it works off something like this.

- They raise capital via user funds, by offering pretty high rates
- They then use the funds they raised to fund safe high interest loans, that have collateral behind it.
- They make money off the spread.

Look at the stats, interest rates are capped at 8 percent a year and the credit they offer is min 8 percent. Actually seems like a pretty good idea...

IF they really use it for lending and make a high  interest from borrower it is really possible for them to give 8% annual interest.
The real problem here is how secured your invesent will be. How they guaranty that your money is secured to them.

[shaw1]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

Is 8% per year, wouldn't it be more beneficial for you to buy bitcoin and Hold for a year?

Not really - this logic is flawed, because your just automatically assuming that BTC is going to go up every year, which is usually not the case. We saw a huge market crash the last year, and this site is promising guaranteed returns of 8 percent a year. Just give them your money and you'll make it back.

This site doesn't actually look so bad, and I think it works off something like this.

- They raise capital via user funds, by offering pretty high rates
- They then use the funds they raised to fund safe high interest loans, that have collateral behind it.
- They make money off the spread.

Look at the stats, interest rates are capped at 8 percent a year and the credit they offer is min 8 percent. Actually seems like a pretty good idea...

IF they really use it for lending and make a high  interest from borrower it is really possible for them to give 8% annual interest.
The real problem here is how secured your invesent will be. How they guaranty that your money is secured to them.

Yeah, but the issue is that their "guaranteed" investing return requires people to be constantly borrowing money from their platform.
Their collateralized loans that they are offering are probably the least risky part of the whole deal. They seem to let people borrow only 50% of the value of the collateral.
I'm guessing they would liquidate the holdings, if it got close. Just like with margin trading.

But this is the real problem:

If they had 100 BTC invested in their platform, and lent that 100 BTC back out, all good.
But what happens when people invest 100 BTC, and only 50 BTC are lent out?

They would have to charge 16% APR to meet their obligations to investors.

Or what if they only have 10 BTC worth of loans?

Then they would need to charge clients 80% APR for the loans to be able to meet that 8% "guaranteed" return for investors on the whole 100 BTC.

Guarantees are a great way to spot current, or future scams.

[timerland]

thoughts on, https://nexo.io/ ?

is a guaranteed 8% a good thing?

Is 8% per year, wouldn't it be more beneficial for you to buy bitcoin and Hold for a year?

Not really - this logic is flawed, because your just automatically assuming that BTC is going to go up every year, which is usually not the case. We saw a huge market crash the last year, and this site is promising guaranteed returns of 8 percent a year. Just give them your money and you'll make it back.

This site doesn't actually look so bad, and I think it works off something like this.

- They raise capital via user funds, by offering pretty high rates
- They then use the funds they raised to fund safe high interest loans, that have collateral behind it.
- They make money off the spread.

Look at the stats, interest rates are capped at 8 percent a year and the credit they offer is min 8 percent. Actually seems like a pretty good idea...

IF they really use it for lending and make a high  interest from borrower it is really possible for them to give 8% annual interest.
The real problem here is how secured your invesent will be. How they guaranty that your money is secured to them.

I'm pretty sure the borrower needs to put down collateral for their loans (they give out fiat money for your crypto, it looks like), so if the borrower defaults, nexo will just keep or liquidate the cryptocurrency - this is probably one of the safest lending options I've seen (assuming they don't go scam).

The real problem is with shaw1. How are they going to keep getting enough loans to be able to offer such high interest rates to the lenders? Surely they close their investment options at some point?

[marcotheminer]

Alternatives to nexo (other companies with tokens too - this one is nexo's: https://coinmarketcap.com/currencies/nexo/) are ETHlend and SALT. BlockFi is a company offering loans and interest on deposits (they had 18M in funding connected to a Peter Thiel venture funding: https://techcrunch.com/2019/08/06/blockfi-which-lends-money-to-cryptocurrency-holders-just-raised-18-3-million-led-by-valar-ventures/).

[Lhaine]

Alternatives to nexo (other companies with tokens too - this one is nexo's: https://coinmarketcap.com/currencies/nexo/) are ETHlend and SALT. BlockFi is a company offering loans and interest on deposits (they had 18M in funding connected to a Peter Thiel venture funding: https://techcrunch.com/2019/08/06/blockfi-which-lends-money-to-cryptocurrency-holders-just-raised-18-3-million-led-by-valar-ventures/).

I just remember this salt ICO has been succesfull and get the hardcap from there ICO . so i think this project was good  totry investing .