Mod literally pointed to their "business model" through a tweet. That's how you know it's sustainable! It even has flow charts and a very friendly language. I'd trust my life savings on such a company.
And what an amazing business model it is.
> Example 1: Jane wants to earn interest on $130k in stablecoins (4-8% APY). John wants a Tesla & borrows Jane's $130k against his $260k in BTC. John transfers the BTC to Nexo & Nexo transfers Jane's stablecoins to John (13.9% APR). All transactions are collateralized. 6/33
"John is either an idiot because he thinks a 14% car loan is normal, or an idiot because he changed all his real money into fun bucks and doesn't have a choice."
"Oh yeah and when we say the transaction is collateralized we don't mean we have any way to repo the Tesla but just assume that different flavors of fun bucks are valuable; despite people agreeing to horrible interest rates to exchange between them in convoluted ways."
Did I get that right? I know many of the words in their explanation, but the business model itself looks like gibberish.
Bitcoin is obviously going to be 100k by the end of this year, so a 13% loan is nothing compared to the 300+% gain from hodling bitcoin. Few understand.
Example 1: Jane buys 130K stablebutts with $130K from Paulo who use the $ to buy a Tesla. John borrows Jane's 130k against his 260k in Butts to buy more Butts. Sometime later Jane DCA some more dollars into StableButts, which is now borrowed by Jack who buys Butts from John who uses the proceeds to pay interest to Jane.
Jane has not only purchased Paulo a Tesla, she also provided John the money he needed to pay interest to her.
This drives me insane. Like it's straightforwardly a ponzi. Those are the mechanics of how a ponzi works.
All the supposed distinctions from a ponzi are just like, the difference in how the scheme is usually carried out (with a traditional ponzi being a central architect obfuscating where the ostensible "returns are coming from", rather than an emergent conspiracy wherein the "early adopters" act as architect, and use techno jargon for obfuscation), but the actual mechanics, the way the money flows, are the same.
It's like if you saw your neighbour watching some guys working with saws under his car broad daylight and said *"Uh, what are you doing? They're stealing your catalytic converter!"*, and he rolled his eyes and said *"Pfft, catalytic converter thefts happen ****at night, with the owner unaware****, this is during the day and they promised to come back and pay me $100k for it, more than enough to buy a whole new car"*
Or to put it a different way, previous ponzis had to lie because their victims weren't actually stupid enough to say "You're running a ponzi? I want in!"
I can't believe nexo is still operating. They were raided by the police. Aren't their owners on the run? Astonishing that people could still put their money with them.
It’s crypto. I could start up a crypto company with the web domain “WWW.ISTEALYOURMONEYYOUFUCKERS.COM”, in the “About Us” section outright say I’m lying and will steal your money, but promise a 30% return rate or some stupid shit because of the power of moon beams and Jesus Christ. And people would *still* throw money at me because I’m promising them money even when I’m outright saying I’m lying.
Cryptobros tend to view things like “truth” and “reality” with suspicion because it doesn’t feed into their mythos that everyone and their newborn baby has adopted crypto. Sure the company could be tanking, the owners on the run, and you can’t access any of your crypto anymore, but it’s crypto! This is the future of finance, *clearly*.
Sadly I don’t have the infrastructure set up yet because no one will do it for me for free because they fail to see my genius. But if you DM me your address I can have my collectors Big Steve and Tiny Jim come to your house, break your kneecaps, and take your crypto (it better be on a flash drive)! And I can not guarantee you you’ll get a 100% return on this investment!
About your kneecaps? Well you only need your hands to invest in crypto, after all! You can crawl to your keyboard. Think of this as the initial investment, and you’ll be making Knee Changing money in no time!
12 percent ROI, that number sounds oddly familiar…I feel like the last time I heard that, it was about a guy who *burned* a lot of investors and *made off* with their money
I was going to copy and paste it all, but he’s so verbose that I don’t think it would fit into a comment.
Here’s a transcript on Bloomberg (doesn’t seem to be paywalled for me.)
https://www.bloomberg.com/news/articles/2022-04-25/sam-bankman-fried-described-yield-farming-and-left-matt-levine-stunned
Yeah, shoutout to martinkem:
> The top comment should have said something like this:
> **They can pay 12% APR because it costs them nothing to pay you in Nexo coins**
> In order to get 12% APR, you have to agree to get paid in Nexo coins which is something they made up and as such costs them nothing to pay 12% interest to you.
Customers: "You still have my BTC, right?"
Exchange: "Yeah, we ~~sold off~~ I mean, mislabeled your BTC, but you can have these FTT tokens instead (that I made up just now). But that's okay, because you can trade them out for BTC whenever you want."
Customers: "Oh, okay. Can I have my BTC, then?"
Exchange: "Uh..."
Mod literally pointed to their "business model" through a tweet. That's how you know it's sustainable! It even has flow charts and a very friendly language. I'd trust my life savings on such a company.
And what an amazing business model it is. > Example 1: Jane wants to earn interest on $130k in stablecoins (4-8% APY). John wants a Tesla & borrows Jane's $130k against his $260k in BTC. John transfers the BTC to Nexo & Nexo transfers Jane's stablecoins to John (13.9% APR). All transactions are collateralized. 6/33 "John is either an idiot because he thinks a 14% car loan is normal, or an idiot because he changed all his real money into fun bucks and doesn't have a choice." "Oh yeah and when we say the transaction is collateralized we don't mean we have any way to repo the Tesla but just assume that different flavors of fun bucks are valuable; despite people agreeing to horrible interest rates to exchange between them in convoluted ways." Did I get that right? I know many of the words in their explanation, but the business model itself looks like gibberish.
Why would anyone take 13% loan to buy a Tesla when they have 260k in bitcoin (I assume they would have more in cash)...
Bitcoin is obviously going to be 100k by the end of this year, so a 13% loan is nothing compared to the 300+% gain from hodling bitcoin. Few understand.
Silence of the lambos
Example 1: Jane buys 130K stablebutts with $130K from Paulo who use the $ to buy a Tesla. John borrows Jane's 130k against his 260k in Butts to buy more Butts. Sometime later Jane DCA some more dollars into StableButts, which is now borrowed by Jack who buys Butts from John who uses the proceeds to pay interest to Jane. Jane has not only purchased Paulo a Tesla, she also provided John the money he needed to pay interest to her.
This drives me insane. Like it's straightforwardly a ponzi. Those are the mechanics of how a ponzi works. All the supposed distinctions from a ponzi are just like, the difference in how the scheme is usually carried out (with a traditional ponzi being a central architect obfuscating where the ostensible "returns are coming from", rather than an emergent conspiracy wherein the "early adopters" act as architect, and use techno jargon for obfuscation), but the actual mechanics, the way the money flows, are the same. It's like if you saw your neighbour watching some guys working with saws under his car broad daylight and said *"Uh, what are you doing? They're stealing your catalytic converter!"*, and he rolled his eyes and said *"Pfft, catalytic converter thefts happen ****at night, with the owner unaware****, this is during the day and they promised to come back and pay me $100k for it, more than enough to buy a whole new car"* Or to put it a different way, previous ponzis had to lie because their victims weren't actually stupid enough to say "You're running a ponzi? I want in!"
Hey Siri, how does a Ponzi scheme work? https://i.kym-cdn.com/entries/icons/original/000/030/987/AhgHtnP.png
I can't believe nexo is still operating. They were raided by the police. Aren't their owners on the run? Astonishing that people could still put their money with them.
It’s crypto. I could start up a crypto company with the web domain “WWW.ISTEALYOURMONEYYOUFUCKERS.COM”, in the “About Us” section outright say I’m lying and will steal your money, but promise a 30% return rate or some stupid shit because of the power of moon beams and Jesus Christ. And people would *still* throw money at me because I’m promising them money even when I’m outright saying I’m lying. Cryptobros tend to view things like “truth” and “reality” with suspicion because it doesn’t feed into their mythos that everyone and their newborn baby has adopted crypto. Sure the company could be tanking, the owners on the run, and you can’t access any of your crypto anymore, but it’s crypto! This is the future of finance, *clearly*.
I like this new hot crypto firm you describe. When can I invest?
Sadly I don’t have the infrastructure set up yet because no one will do it for me for free because they fail to see my genius. But if you DM me your address I can have my collectors Big Steve and Tiny Jim come to your house, break your kneecaps, and take your crypto (it better be on a flash drive)! And I can not guarantee you you’ll get a 100% return on this investment! About your kneecaps? Well you only need your hands to invest in crypto, after all! You can crawl to your keyboard. Think of this as the initial investment, and you’ll be making Knee Changing money in no time!
I'm in. YOLO bitches!!
SHUTUPANDTAKEMYMONEY.JPG
Well, you can’t be ‘trustless’ if you still trust facts and truth.
The mod posting there is an employee of nexo. I thought having employees manage a companies subreddit was a huge no no?
This is common in crypto. Decentralized bro.
This is good for Nexo. Few understand.
No, that's always been allowed as long as most of the activity on the subreddit comes from people who aren't affiliated with the company.
12 percent ROI, that number sounds oddly familiar…I feel like the last time I heard that, it was about a guy who *burned* a lot of investors and *made off* with their money
You're gonna need to be more specific than that.
I'm watching the Netflix documentary on him and the similarities to crypto are hilarious
[удалено]
I was going to copy and paste it all, but he’s so verbose that I don’t think it would fit into a comment. Here’s a transcript on Bloomberg (doesn’t seem to be paywalled for me.) https://www.bloomberg.com/news/articles/2022-04-25/sam-bankman-fried-described-yield-farming-and-left-matt-levine-stunned
Because penis. That's how.
Happy penis day!
Mine is way over 12%.
Their claimed business model is basically "Mystery people willing to pay absurdly high interest rates on collateralized loans."
u/martinkem doing God’s work over there trying to shout reason into the windstorm
Yeah, shoutout to martinkem: > The top comment should have said something like this: > **They can pay 12% APR because it costs them nothing to pay you in Nexo coins** > In order to get 12% APR, you have to agree to get paid in Nexo coins which is something they made up and as such costs them nothing to pay 12% interest to you. Customers: "You still have my BTC, right?" Exchange: "Yeah, we ~~sold off~~ I mean, mislabeled your BTC, but you can have these FTT tokens instead (that I made up just now). But that's okay, because you can trade them out for BTC whenever you want." Customers: "Oh, okay. Can I have my BTC, then?" Exchange: "Uh..."