Nexo invest 50K euro on this platform, secure?
- Thread starter happyjohn
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Very surprising that Nexo is still around, as it was considered the riskiest/shadiest lending company.
But it means nothing, as some went bankrupt a year after FTX and Celsius, probably there are still crypto companies out there that are still hiding their exposure.
But it means nothing, as some went bankrupt a year after FTX and Celsius, probably there are still crypto companies out there that are still hiding their exposure.
I held more than 300K at Nexo at times, kept BTC at GROW app for 2 years for that sweet %6.5 APY on BTC.he
Cashed out of GROW as soon as the term was up, and never had any trouble with Nexo either.
That said, I lost some money in the LUNAtic DEFI that offered 19% interest on USD, though not as much as others, as I exited quickly enough.
IMHO Nexo should be ok for 3 months, but I would avoid keeping anything on exchanges, no matter if staked or not, from mid 2025. Let's call it 'claircognizance'.
Cashed out of GROW as soon as the term was up, and never had any trouble with Nexo either.
That said, I lost some money in the LUNAtic DEFI that offered 19% interest on USD, though not as much as others, as I exited quickly enough.
IMHO Nexo should be ok for 3 months, but I would avoid keeping anything on exchanges, no matter if staked or not, from mid 2025. Let's call it 'claircognizance'.
Hey everyone, just sharing my 2 cents here!
a) Nexo remains one of the few survivors in the "crypto lending" space, while others like BlockFi and Celsius got wiped, badly! I give them credit for this.
b) Before obtaining its licenses, Nexo was initially backed by Credissimo, a Bulgarian "shark loan" company known for offering high-interest loans (EUR and BGN currencies). The founders of Credissimo started Nexo when they saw the opportunity in crypto.
c) Once Nexo secured its licenses, it distanced itself from Credissimo and was no longer "flying with its license".
d) Nexo initially offered dividends through its NEXO token, but since the SEC classifies that as a Security Token, they had to stop the practice and ended︀ up paying a $45 million fine to the SEC. The token was then transformed into︁ an "exchange token" where you earn higher interest if you chose to get paid by︂ it.
https://www.sec.gov/newsroom/press-releases/2023-11
e) How does Nexo generate interest on your deposits? They engage in market︃ making and other hedge fund activities across various exchanges, typically with small exposures of $1-3M︄ on those platforms - they wont admit to this, but I know that they trade︅ on crypto.com and Binance, so I would assume with confidence that they trade o other︆ exchanges too.
f) What happens if one of these exchanges goes bankrupt? Nexo's funds could︇ get stuck, which may impact users.
Bottom Line ------ Remember, unless you're using DeFi, most︈ exchanges commingle user funds for hedge fund and MM activities to generate interest. Eventually its︉ a risk that you are willing to take, or not willing to take.
Funny thing:︊ NEXO sued the Bulgarian Government: https://www.reuters.com/technology/...lgaria-over-aborted-investigation-2024-01-24/
a) Nexo remains one of the few survivors in the "crypto lending" space, while others like BlockFi and Celsius got wiped, badly! I give them credit for this.
b) Before obtaining its licenses, Nexo was initially backed by Credissimo, a Bulgarian "shark loan" company known for offering high-interest loans (EUR and BGN currencies). The founders of Credissimo started Nexo when they saw the opportunity in crypto.
c) Once Nexo secured its licenses, it distanced itself from Credissimo and was no longer "flying with its license".
d) Nexo initially offered dividends through its NEXO token, but since the SEC classifies that as a Security Token, they had to stop the practice and ended︀ up paying a $45 million fine to the SEC. The token was then transformed into︁ an "exchange token" where you earn higher interest if you chose to get paid by︂ it.
https://www.sec.gov/newsroom/press-releases/2023-11
e) How does Nexo generate interest on your deposits? They engage in market︃ making and other hedge fund activities across various exchanges, typically with small exposures of $1-3M︄ on those platforms - they wont admit to this, but I know that they trade︅ on crypto.com and Binance, so I would assume with confidence that they trade o other︆ exchanges too.
f) What happens if one of these exchanges goes bankrupt? Nexo's funds could︇ get stuck, which may impact users.
Bottom Line ------ Remember, unless you're using DeFi, most︈ exchanges commingle user funds for hedge fund and MM activities to generate interest. Eventually its︉ a risk that you are willing to take, or not willing to take.
Funny thing:︊ NEXO sued the Bulgarian Government: https://www.reuters.com/technology/...lgaria-over-aborted-investigation-2024-01-24/
Was just completing some in-house keeping on a few charts, and came across the current yield for USDT loaned out on Aave and Nexo.
Aave is a decentralised non custodial lending protocol, one of the largest, current Yield is 2.91%
Nexo is a centralised custodial based lending protocol, current yield 11%
Brought back memories of FTX crew reaching out for funds (promising yield).
Something odd there, 11% in a centralised non-accessible - viewable counterparty arrangement v 2.91% in the open market.
Aave is a decentralised non custodial lending protocol, one of the largest, current Yield is 2.91%
Nexo is a centralised custodial based lending protocol, current yield 11%
Brought back memories of FTX crew reaching out for funds (promising yield).
Something odd there, 11% in a centralised non-accessible - viewable counterparty arrangement v 2.91% in the open market.
I've never seen good yields on Aave, and the chance that Aave will mess up something in the next︀ few years is very high even 20% doesn't worth it there imo.
Bug in a︁ smart contract, a mistake during migrations, insider job, ... it can go bad in so︂ many ways, 3% is a joke for this risk.
Sometimes Binance offers very high yield︃ on USDT too, up to 25%, but only lasts for a few days until people︄ get bored of futures trading.
11% for long term is different, maybe they are in︅ trouble, people should stay away from Nexo.
Bug in a︁ smart contract, a mistake during migrations, insider job, ... it can go bad in so︂ many ways, 3% is a joke for this risk.
Sometimes Binance offers very high yield︃ on USDT too, up to 25%, but only lasts for a few days until people︄ get bored of futures trading.
11% for long term is different, maybe they are in︅ trouble, people should stay away from Nexo.
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