Nexo.io - What's your experience?

[3tails]

In a nutshell, Nexo.io is a high yield savings account that allows the deposit of cryptocurrency and euros. The site also allows for heavily collateralized loans.

The currency put into your account is used to help fund the loans mentioned beforehand. Many banks do this anyway, so I'm not surprised. The fact that you need to have collateral multiple times your loan amount helps reduce lending risk. From what I see, $100 in Nexo tokens means you can take out a $16 loan. Yes, that heavily collateralized!

The accounts are insured by Lloyds of London & BitGo for up to 100 million. Nexo is also a licensed & regulated banking institution. They are going full on legit white hat from what I can see.

The savings account comes in two flavors: Euro/stablecoin and Nexo tokens.

Nexo tokens give a share of the company dividends at least twice a year. You get 30% of the company profit, divided among all nexo token holders who have their tokens in a Nexo account. Supposedly there's a loyalty bonus for leaving coins in there a long time.

If you deposit Euro/Stablecoins says it gives 8% compound interest. Supposedly this works out to $8 per year for ever $100 deposited. You can withdraw at any time.

At the moment all other coins are "hold only". They do not gain any interest from being in Nexo, but may be held there freely. All interest and dividends are paid out in cryptocurrency such as Ethereum or Bitcoin.


Have you tried Nexo.io?
If so, what did you think of them? If not, what do you think of this idea?

I put in about $75 in Nexo tokens and got $2.65 worth of BTC last dividend drop. My coins had been in there for about two months. Not an amazing return, but much better than my bank. I have not tried the stablecoins/EUR version yet. I am curious about it, however.

And, of course, a screenshot. The first dollar amount is current coin value. The second is the maximum loan amount I could take out if I wanted to take out a loan.

 

[WatchMaker]

Come on, man!

Stick with the traditional banking because it's more stable compare to any form of crypto.

Cryptos are only profitable when the market is bullish. Once the bears return here comes the losing part.

I prefer investing on crypto only when the market is bullish to make profits. Crypto is a hit and run market. Never trust any crypto!

 

[3tails]

Come on, man!

Stick with the traditional banking because it's more stable compare to any form of crypto.

Cryptos are only profitable when the market is bullish. Once the bears return here comes the losing part.

I prefer investing on crypto only when the market is bullish to make profits. Crypto is a hit and run market. Never trust any crypto!

Nexo isn't a place to do wild speculation on cryptocurrency prices. It's a bank that uses cryptocurrency for loans and savings accounts. I find this slow and steady approach interesting. It seems like a potential evolution for cryptocurrency beyond just speculation.

You are aware that the US dollar is a faith backed currency, right? There is nothing backing it. No gold, no silver. Just faith in the government.

The cryptos this site uses for interest bearing savings accounts are all stablecoins or fiat. These stablecoins actually are backed by things ranging from ironically US dollars (Tether) to Gold (Pax Gold). The price on these coins hovers at around a dollar by design except for Pax Gold as it's actually based on the current price of gold. Here's a comparison chart of some common stablecoins.

Their token is basically a tokenized form of bonds to distribute dividends while raising money. Basically, the same as buying any bond on a stock market. Price may rise or fall but should remain based on company performance. It's interesting that these can used as collateral on a loan, IMHO. Can you usually use bonds or stocks as collateral at a bank?

Of course giving out dividends/interest in non-stable crypto can be dicey, but as long as it's more than the 2% my bank offers (at maximum!) it still could work out well while allowing an easy "middle man" currency for those not using Euros. I wish they paid out dividends/interest in stablecoins, but that's just me. If you're wondering, they actually cover transfer and interaction fees last I heard. You don't need to pay $5 to get your BTC or what have you out of there like you would for a wallet to wallet transfer anywhere else.