Luno introduces interest paying Bitcoin wallet

[pixie85]

I won't risk 100% of my Bitcoin for 4% interest. If i want to earn passive income (through interest), i would rather use PoS coin or just deposit fiat on bank.

You are basically getting a risk free interest by claiming free coins with your BTC.

If you had BTC in 2017 you could get free BCH and then free BSV later on. If you sold both of these you gott more interest than you could hope for with any of these third party fund management services

4% is definitely not worth it. You can get similar interest by lending to a casino, but at least they are openly saying that you're lending to them, not fooling around calling themselves a savings wallet.

[1715636449]

1715636449

[1715636449]

1715636449

[1715636449]

1715636449

[1715636449]

1715636449

[leea-1334]

Just be sure not to keep everything on one wallet my friend. I think Luno deserves some credit for helping people in Southeast Asia get into Bitcoin but hopefully most people know that you actually do not own any Bitcoin at all on Luno (it does not even let you withdraw Bitcoin) so you should switch asap to have REAL bitcoin.

[Kakmakr]

for 4% i would rather store my coins in a business that i know has been working for a long time (the freebitco.in site) and is not called a "wallet". it makes sense for them to pay profit but it looks real shady to me that all these so called wallets claim to pay interest while have a very high risk scheme.

Seriously?

What do you know about Freebitco.in? Do you know who the owner is? Do you know if they are paying their taxes? How do they get the 4%+ they are paying in interest to their investors? (They say through mining)   Do not get me wrong... I love Freebitco.in and they have a very good track record, but I think Luno.com is a more trustworthy option, because it is regulated.

Nope... I would rather invest my money in a company with a physical address and a known board of directors and team working on this exchange. This Luno exchange is also fully KYC compliant and regulated within their jurisdiction. Luno.com is a leading global cryptocurrency company with a team of nearly 400 technology and finance experts, operating across several countries and continents.

They also have a very good track record, because they have not been hacked yet. (Most funds are in cold wallets)

Sources : https://www.luno.com/en/about   and also https://www.businesslive.co.za/bd/companies/2018-08-07-our-crypto-platform-is-secure-says-luno/  (old article, but I have friends using this exchange and they say it has never been hacked)

[o_e_l_e_o]

-snip-

What about Genesis, who Luno hand all your money over to? Do you know everything you need to about them? What about the selection of unnamed and unspecified third parties which Genesis then hand your money over to? You don't even know the names of those third parties, let alone who owns them, where they are based, if they pay taxes, etc.

Being fully KYC compliant also means nothing for client safety. It means the exchange/service is protecting themselves against being punished for not complying with AML regulations, but it means nothing for customers. Full KYC exchanges can and do freeze accounts and seize client funds based on dubious blockchain "evidence" all the time.

I wouldn't store my bitcoin anywhere that I do not have full control over them, but just because Luno are regulated doesn't make them inherently more trustworthy or safer than freebitco.in in my opinion.

[Kakmakr]

-snip-

What about Genesis, who Luno hand all your money over to? Do you know everything you need to about them? What about the selection of unnamed and unspecified third parties which Genesis then hand your money over to? You don't even know the names of those third parties, let alone who owns them, where they are based, if they pay taxes, etc.

Being fully KYC compliant also means nothing for client safety. It means the exchange/service is protecting themselves against being punished for not complying with AML regulations, but it means nothing for customers. Full KYC exchanges can and do freeze accounts and seize client funds based on dubious blockchain "evidence" all the time.

I wouldn't store my bitcoin anywhere that I do not have full control over them, but just because Luno are regulated doesn't make them inherently more trustworthy or safer than freebitco.in in my opinion.

Being regulated means ..they have to undergo certain procedures (FINCEN etc.) to be a financial provider. In essence these third parties have to adhere to stringent requirements to operate. Why would they risk handing your money over to a dodgy entity and losing their license to operate?

Luno has a lot to lose, if they handle their customers funds recklessly. In any way... I have some coins invested in Freebitco.in ..but I see this as a very high risk investment, because I do not know who I am dealing with. 

[TryNinja]

Sorry for the bump, but I just heard that Cred[1] was "hacked" and it's filling for bankruptcy[2]. They are a competitor of Blockfi, Celsius, Nexo, etc... and made money the same way they did, by lending your coins and paying you interest. They locked all of their customers money and aren't giving answers to any of them. They also supposedly deleted all their blog posts and pages talking about insurance.

They were one of the largest lenders/borrowers in the market, and had a partnership with several big wallets, such as Bitcoin.com, Huobi wallet, Edge and CoinStats, where you could start earning money with "just one click"[3].

I haven't found a single post talking about this on the forum, so I decided to post this here, since we were talking about this kind of business. Be careful. Even though I myself have some coins on Blockfi and Celsius, this is not a fail proof solution to "make easy money". Not your keys, not your coins.

[1] https://mycred.io/
[2] https://www.coindesk.com/crypto-lender-cred-files-for-bankruptcy
[3] https://news.bitcoin.com/bitcoin-com-wallet-launches-creds-1-touch-earn-button/

[stompix]

Sorry for the bump, but I just heard that Cred[1] was "hacked" and it's filling for bankruptcy[2]. T

I see what the problem was:

“At Bitcoin.com, we believe borrowing and earning services like Cred are a natural next step for Bitcoin wallet holders and will be very attractive to users of Bitcoin Cash,” said Roger Ver, CEO of Bitcoin.com. “In Cred, we have found a like-minded partner who shares our vision and brings significant experience and a solid track record in offering reliable, secure crypto backed lending and borrowing services to the crypto community.”

Why is that everything that gets close to this person turns to shift?

From their Twitter account:

1/2 We would like to further clarify that Cred is not under investigation.
Cred approached law enforcement to help investigate irregularities in the handling of specific corporate funds by a perpetrator
2/2 We also want to acknowledge the concerns expressed about Cred being hacked. We can tell you that's not the case. No Cred systems, customer accounts, or customer information have been compromised.

.

Hmm, irregularities, handling funds, perpetrator...
Quite surprising to be honest, I can't remember a company that denies a hack and blames it on an insider.

And about the deleted pages, somebody was fast enough to make an archive of it:
https://archive.vn/1ll7S
The usual stuff, funds are SAFU with us, till they are not.

[Kakmakr]

Well, there are clearly risks involved with any lending partner, but you get that with any Financial organization. Luno did not just take some unknown fly-by-nigh lending partner for this venture... they actually decided on using "Genesis" who launched the first U.S. OTC bitcoin trading desk in 2013 and they are handling Billions of Dollars in investments.

Genesis are also the world’s largest lender of digital assets, so we not dealing with amateurs here. Luno are also very transparent with the risks, see https://www.luno.com/en/legal/savings-wallet