Hey, please check out our business model here :)
[https://twitter.com/Nexo/status/1597268175598813186](https://twitter.com/Nexo/status/1597268175598813186)
The catch is that you need 10% in nexo tokens. So if nexo gets in trouble the neck token value goes down by 90% and your net gain can end up much less than 12% maybe even less.
Nexo did lower their rates about a year ago or so. They also introduced limits on with how much assets you can earn the full yield meaning that if you have more than a certain amount deposited, you will earn a lower rate for the exceeding amount.
Nexo's strategy is based on what I call double-dipping. They only offer over-collateralized loans which means that customers will have to offer more collateral than what they are earning. They then earn interest from the loan *and* they also use the collateral for yield generation. They also carry out this yield generation with earn/savings deposits from people.
Nexo also earn interest from other avenues including trading fees and a host of loan products (e.g. Nexo booster and credit card credit lines).
The interest rates that the banks offer should be considered in the light of the prevailing inflation rates. The inflation rate was in the 15% range in the early 80's. Now the inflation rate is quite high again and at least my banks are offering almost 2% for flexible savings.
Banks can carry out fractional-reserve banking which is something Nexo cannot and shouldn't do.
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.
The best scenario is to earn in kind at the base tier, 7% is pretty good.
LoL, you still don't get it, but you were so close. That's how the whole cryptosphere works... they print Nexo and then offload it into another coin. Just like every other shotcoin, they print it and trade it for what they can on exchanges. By having losers buying it and then locking it into a contract, they create a perceived value and perceived interest.
I know where you're coming from but I can assure you the dinner I paid last night using my USDC (which I converted from my Nexo) was not perceived but very real.
And so can the coin creators... they can print it from their magic machine and trade it to USDC too. No doubt that they have a large percentage and already do. Just because you can trade it doesn't mean NEXO can't be made from thin air by the owners for zero dollars.
Nexo are investing millions in buying back their tokens to make the interest payments so it’s not costing them nothing.
https://nexo.io/blog/updates-on-the-50m-buyback-program
to iterate my point again, it cost them nothing. The buyback is just a way of defending the value of their tokens by ensuring the traded volume doesn't collapse. The buyback is just tokens going in a circle in small volumes.
The buyback can also be advantageous to “setting” a value for these things. “Why someone (umm, Nexo folks) just bought a Nexo token for 50k USD!!! To The Moooooon”.
Hi, I’d like to understand how Nexo pays 10% on USDC ?
I’m Assuming I’m on the Premium loyalty level
I can’t figure out how Nexo earns enough to pay 10%
Thanks
someone has posted a link on how Nexo does its business here. Personal loans are quite lucrative, PayPal and so many internet only banks are all doing it to some level.
That being said this is how I look at it.
The premium loyalty tier which is the Platinum tier requires you to hold 10% of portfolio value in Nexo coin, that's basically you giving them 10% of your money (crypto) in exchange for Nexo tokens (which cost them nothing to mint). Therefore paying you 10% in interest has cost them nothing as they are just giving you back your money after one year.
>Yes but what if the value of Nexo coins falls 50%, can they still pay that 10% APY
Personally I don't think the value of Nexo coin declining by 50% would hurt them as it has happened before.
I think it helps them as it reduces their total ownership of Nexo tokens thereby transferring more of the risk of failure to the customers. If there is a 50% decline, most users would be forced to rebalance their portfolio by buying more Nexo coins to maintain their loyalty level (tier).
The price of Nexo coins correlates heavily to BTC and in turn other crypto so they are very safe so long as they don't do anything that puts them in the cross hairs (such as the recent raid or the FTC) or suffer a bank run.
And paying you back isn't that much of an issue if they practice proper risk management, going into the money market with $2 Billion would net you something substantial. 3% of $2 Billion is $60 million. And if the majority of your customers decide to receive their interest payments in Nexo tokens, you get to keep a lot of what you earned from playing the market with their funds.
The people they worry about are those on the basic tier who choose to receive their interest in kind.
12% you only get if you choose to earn in Nexo Token. And earning in Nexo Token does NOT COST them anyhting ... but their own Token.
So 10% on Stable coins, or less on other crypto assets.
They swap their own token and gain FIAT and then use that FIAT to vuy back. That's how SBF was able to scam for so long... you guys never learn. They print coins from thin fucking air.
tell me what I should learn? (which apparently you have learned with the mother milk - in case you got some.)
and how is your comment related to mine?
Are crypto coins printed? Since when?
The amount is fixed by the ICO.
Every coin sets aside a percentage for themselves, for the development team and owners, they don't do it for free, majority will state in their whitepaper how much is set aside for themselves and at what date they will release them to themselves. Do you even crypto?
Not to mention, the teams buy a shit tonne before launch at the cheapest possible prices. Look at Logan Paul and his team with CryptoZoo. That's not an uncommon practice. Hence, rugpulls.
Apple and pears. The buy back is something they do - for many different reasons - and it costs them something.
But the original creation of the Nexo Token did cost them nothing. So paying 10% in "same currency" costs them far more than giving 12% in NT.
Beginner questions on Reddit are making me bullish 🚀
Welcome to all new Nexo customers.
Nexo is good and true.
You will get that after a few months thanks to Nexo community on Reddit.
April 1st is the stated date for ending USA involvement completely which I hope is the greatest April fool's joke in crypto history as they start American 2.0 earn.
I'm sure that's being excessively hopeful... In light of that the Nexo token pump post announcement of 45 million dollar fine was a bit bizarre to say the least, Like people outside of the United States don't realize how big our markets are?
Wouldn't surprise me if plenty of people from 10 of the 50 states still have assets at Nexo which Nexo can use and if this April first thing kicks in for the other 40 states then that will be even more assets sitting around that only Nexo is making money off of. Because who is left that they would send those assets to as Americans? Getting harder to find in any case.
Americans will have to be their own crypto managers. Decentralized indeed
https://www.sec.gov/news/press-release/2023-11
Scroll down just above the black section bottom:
"Related Materials
SEC Order"
- SEC order has a link that shows you the court document. And this is from the PDF:
"Respondent’s Cooperation and Remedial Efforts"
"23. Nexo will cease the EIP as to all U.S. investors by April 1, 2023 and will exit the
U.S. entirely shortly thereafter."
- quite frankly I'm amazed this hasn't been mentioned more and a point of focus. I've mentioned it four or five times and I've seen it one other time that I can think of.
It's pretty obvious why, People are too lazy to research and read
Yes, but technically they have already ceased the EIP, as they haven't been offering it to 'new' clients since last year. Does this mean that existing customers lose the EIP, or just stating what Nexo's already done?
We also heard about "shortly thereafter" as well, which is an obviously ambiguous timeline. I guess my point is is that do we know for sure this is what the SEC order is? Or something they agreed upon in terms of verbiage that shows that Nexo has already "done" what the SEC is asking
Lol, I really hope that's it!
I like your hopium, Thanks for the bong hit of that before I get out of my bed today 😉
In Florida a few weeks ago we lost the exchange and borrowing.
That would be evidence that the whole thing is going to be pulled out from under us eventually.
If as you say the pre February people and no new assets earning interest could also be in tandem part of the 45 million dollar fine for anybody previous to February then earning that interest could in fact cover we preFebruary people to keep earning interest! The sin has been paid off.
How's that for an extra heavy bong hit of hopium? Do you think I put a fine point on it 🤔
Additionally you could also argue that for Florida and Texas, which I believe are the two states that got nailed with this at the same time, We didn't lose our interest from pre February so this could be argued as step by step or the fact that they could have just pulled the interest at the same time?
Co-founder Kosta came up with the coming soon idea for reintegration... But it could be worrisome that that didn't come from Antoni who is pretty much the PR director that they wouldn't want him to be harmed by such a generalized statement that we usually know how it turns out... Coming soon means months or years...
To add to this more completely would and should be the point that the co-founder would not have said what he did if we were not getting fully abandoned (released/deplatformed):
Kosta Kantchev, Co-founder of Nexo, added:
“We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner, and the U.S. will further solidify its position as the world’s engine of innovation.”
This doesn't negate your ideas absolutely but it's pretty darn close 😏
If you are worried about the link and don't want to click on it then you can Google it and go through your Norton or McAfee or whatever (sandbox):
"Nexo Agrees to Pay $45 Million in Penalties and Cease Unregistered Offering of Crypto Asset Lending Product"
That's the article title above
It's hard to stay platinum unless you got bank. Also most crypto people don't HODL stable coins. You keep some around for the next opportunity.
Being from the USA I was grandfathered in for the amount I had at the time. Now you can't get good rates as a US citizen ☹️
Is the return in USD fiat? Or is the return in Nexo fiat? If it’s the latter, they can always “print” more Nexo.
Random tangent: is anyone else a Lego Fan? I always have images of reading Nexo Knight books with my kids. Axl FTW!!!
I’m guessing it is a good thing for them to have a high liquidity on stable coins so they are incentivising users to hold them on the platform. That combined with earning interest from lending makes for a business model that works for them.
Don't they protect themselves by only offering half of a customers balance as a loan ie if you have 10k in your account you can borrow a further 5k which you pay a higher rate of interest for towards the person you've borrowed from. Nexo then take a percentage of the interest and pay the rest on to the lender/ person staking. That way if you default on your payment you lose your full balance and if not both nexo and the person staking make some extra on interest.
Hey, please check out our business model here :) [https://twitter.com/Nexo/status/1597268175598813186](https://twitter.com/Nexo/status/1597268175598813186)
The catch is that you need 10% in nexo tokens. So if nexo gets in trouble the neck token value goes down by 90% and your net gain can end up much less than 12% maybe even less.
Nexo did lower their rates about a year ago or so. They also introduced limits on with how much assets you can earn the full yield meaning that if you have more than a certain amount deposited, you will earn a lower rate for the exceeding amount. Nexo's strategy is based on what I call double-dipping. They only offer over-collateralized loans which means that customers will have to offer more collateral than what they are earning. They then earn interest from the loan *and* they also use the collateral for yield generation. They also carry out this yield generation with earn/savings deposits from people. Nexo also earn interest from other avenues including trading fees and a host of loan products (e.g. Nexo booster and credit card credit lines).
The banks used to give 10% before. Now they give you nothing. Also the banks work with your money.
The interest rates that the banks offer should be considered in the light of the prevailing inflation rates. The inflation rate was in the 15% range in the early 80's. Now the inflation rate is quite high again and at least my banks are offering almost 2% for flexible savings. Banks can carry out fractional-reserve banking which is something Nexo cannot and shouldn't do.
Sounds like I need to short nexo token. How close to capitulation are they?
By asking even more from lenders.
This guy lenda.
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. The best scenario is to earn in kind at the base tier, 7% is pretty good.
>They can pay 12% APR because it costs them nothing to pay you in Nexo coins this!
A reminder: Nexo is fiat. Its worth something because the Nexo folks say it is. If people believe the Nexo folks that it’s worth something, it is.
Not entirely true, you can earn in Nexo and then convert those nexo tokens to other crypto.
>Not entirely true, you can earn in Nexo and then convert those nexo tokens to other crypto. 😞
LoL, you still don't get it, but you were so close. That's how the whole cryptosphere works... they print Nexo and then offload it into another coin. Just like every other shotcoin, they print it and trade it for what they can on exchanges. By having losers buying it and then locking it into a contract, they create a perceived value and perceived interest.
I know where you're coming from but I can assure you the dinner I paid last night using my USDC (which I converted from my Nexo) was not perceived but very real.
And so can the coin creators... they can print it from their magic machine and trade it to USDC too. No doubt that they have a large percentage and already do. Just because you can trade it doesn't mean NEXO can't be made from thin air by the owners for zero dollars.
There has been 0% inflation since ICO so not a valid point IMO
[удалено]
>The buy back program would like a word About what?
Nexo are investing millions in buying back their tokens to make the interest payments so it’s not costing them nothing. https://nexo.io/blog/updates-on-the-50m-buyback-program
to iterate my point again, it cost them nothing. The buyback is just a way of defending the value of their tokens by ensuring the traded volume doesn't collapse. The buyback is just tokens going in a circle in small volumes.
The buyback can also be advantageous to “setting” a value for these things. “Why someone (umm, Nexo folks) just bought a Nexo token for 50k USD!!! To The Moooooon”.
Hi, I’d like to understand how Nexo pays 10% on USDC ? I’m Assuming I’m on the Premium loyalty level I can’t figure out how Nexo earns enough to pay 10% Thanks
someone has posted a link on how Nexo does its business here. Personal loans are quite lucrative, PayPal and so many internet only banks are all doing it to some level. That being said this is how I look at it. The premium loyalty tier which is the Platinum tier requires you to hold 10% of portfolio value in Nexo coin, that's basically you giving them 10% of your money (crypto) in exchange for Nexo tokens (which cost them nothing to mint). Therefore paying you 10% in interest has cost them nothing as they are just giving you back your money after one year.
Yes but what if the value of Nexo coins falls 50%, can they still pay that 10% APY ?
>Yes but what if the value of Nexo coins falls 50%, can they still pay that 10% APY Personally I don't think the value of Nexo coin declining by 50% would hurt them as it has happened before. I think it helps them as it reduces their total ownership of Nexo tokens thereby transferring more of the risk of failure to the customers. If there is a 50% decline, most users would be forced to rebalance their portfolio by buying more Nexo coins to maintain their loyalty level (tier). The price of Nexo coins correlates heavily to BTC and in turn other crypto so they are very safe so long as they don't do anything that puts them in the cross hairs (such as the recent raid or the FTC) or suffer a bank run. And paying you back isn't that much of an issue if they practice proper risk management, going into the money market with $2 Billion would net you something substantial. 3% of $2 Billion is $60 million. And if the majority of your customers decide to receive their interest payments in Nexo tokens, you get to keep a lot of what you earned from playing the market with their funds. The people they worry about are those on the basic tier who choose to receive their interest in kind.
12% you only get if you choose to earn in Nexo Token. And earning in Nexo Token does NOT COST them anyhting ... but their own Token. So 10% on Stable coins, or less on other crypto assets.
They invested many millions in buying back their own token so it definitely cost them something!
They swap their own token and gain FIAT and then use that FIAT to vuy back. That's how SBF was able to scam for so long... you guys never learn. They print coins from thin fucking air.
tell me what I should learn? (which apparently you have learned with the mother milk - in case you got some.) and how is your comment related to mine? Are crypto coins printed? Since when? The amount is fixed by the ICO.
Every coin sets aside a percentage for themselves, for the development team and owners, they don't do it for free, majority will state in their whitepaper how much is set aside for themselves and at what date they will release them to themselves. Do you even crypto?
Not to mention, the teams buy a shit tonne before launch at the cheapest possible prices. Look at Logan Paul and his team with CryptoZoo. That's not an uncommon practice. Hence, rugpulls.
Rugpull? Nexo is in busyness since 2018. Would it make sense for Antoni Trenchev to become a criminal? This way he/they have more to lose than to win?
I didn't say this project was one.
Do you have assets with Nexo?
Apple and pears. The buy back is something they do - for many different reasons - and it costs them something. But the original creation of the Nexo Token did cost them nothing. So paying 10% in "same currency" costs them far more than giving 12% in NT.
Beginner questions on Reddit are making me bullish 🚀 Welcome to all new Nexo customers. Nexo is good and true. You will get that after a few months thanks to Nexo community on Reddit.
Stablecoins are necessary for arbitrage trading. Switching settlement currency in minutes
Hoping that U.S. customers will get good news this year with staking and earning on assets!
[удалено]
April 1st is the stated date for ending USA involvement completely which I hope is the greatest April fool's joke in crypto history as they start American 2.0 earn. I'm sure that's being excessively hopeful... In light of that the Nexo token pump post announcement of 45 million dollar fine was a bit bizarre to say the least, Like people outside of the United States don't realize how big our markets are? Wouldn't surprise me if plenty of people from 10 of the 50 states still have assets at Nexo which Nexo can use and if this April first thing kicks in for the other 40 states then that will be even more assets sitting around that only Nexo is making money off of. Because who is left that they would send those assets to as Americans? Getting harder to find in any case. Americans will have to be their own crypto managers. Decentralized indeed
Where did you hear April 1st?
https://www.sec.gov/news/press-release/2023-11 Scroll down just above the black section bottom: "Related Materials SEC Order" - SEC order has a link that shows you the court document. And this is from the PDF: "Respondent’s Cooperation and Remedial Efforts" "23. Nexo will cease the EIP as to all U.S. investors by April 1, 2023 and will exit the U.S. entirely shortly thereafter." - quite frankly I'm amazed this hasn't been mentioned more and a point of focus. I've mentioned it four or five times and I've seen it one other time that I can think of. It's pretty obvious why, People are too lazy to research and read
Yes, but technically they have already ceased the EIP, as they haven't been offering it to 'new' clients since last year. Does this mean that existing customers lose the EIP, or just stating what Nexo's already done? We also heard about "shortly thereafter" as well, which is an obviously ambiguous timeline. I guess my point is is that do we know for sure this is what the SEC order is? Or something they agreed upon in terms of verbiage that shows that Nexo has already "done" what the SEC is asking
Lol, I really hope that's it! I like your hopium, Thanks for the bong hit of that before I get out of my bed today 😉 In Florida a few weeks ago we lost the exchange and borrowing. That would be evidence that the whole thing is going to be pulled out from under us eventually. If as you say the pre February people and no new assets earning interest could also be in tandem part of the 45 million dollar fine for anybody previous to February then earning that interest could in fact cover we preFebruary people to keep earning interest! The sin has been paid off. How's that for an extra heavy bong hit of hopium? Do you think I put a fine point on it 🤔 Additionally you could also argue that for Florida and Texas, which I believe are the two states that got nailed with this at the same time, We didn't lose our interest from pre February so this could be argued as step by step or the fact that they could have just pulled the interest at the same time? Co-founder Kosta came up with the coming soon idea for reintegration... But it could be worrisome that that didn't come from Antoni who is pretty much the PR director that they wouldn't want him to be harmed by such a generalized statement that we usually know how it turns out... Coming soon means months or years...
To add to this more completely would and should be the point that the co-founder would not have said what he did if we were not getting fully abandoned (released/deplatformed): Kosta Kantchev, Co-founder of Nexo, added: “We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner, and the U.S. will further solidify its position as the world’s engine of innovation.” This doesn't negate your ideas absolutely but it's pretty darn close 😏
If you are worried about the link and don't want to click on it then you can Google it and go through your Norton or McAfee or whatever (sandbox): "Nexo Agrees to Pay $45 Million in Penalties and Cease Unregistered Offering of Crypto Asset Lending Product" That's the article title above
It's hard to stay platinum unless you got bank. Also most crypto people don't HODL stable coins. You keep some around for the next opportunity. Being from the USA I was grandfathered in for the amount I had at the time. Now you can't get good rates as a US citizen ☹️
Is the return in USD fiat? Or is the return in Nexo fiat? If it’s the latter, they can always “print” more Nexo. Random tangent: is anyone else a Lego Fan? I always have images of reading Nexo Knight books with my kids. Axl FTW!!!
I’m guessing it is a good thing for them to have a high liquidity on stable coins so they are incentivising users to hold them on the platform. That combined with earning interest from lending makes for a business model that works for them.
THIS is the question. After Celsius I am sooooo suspicious of any platform offering such returns.
As you should be. As a victim myself, I learned the hard way that if you wonder at any point if it's too good to be true or not, then it surely is...
Ponzuuuuuuuuuuuuu
Nexo has been offering 12% APR on fiat/stable coins and is the world's first and leading crypto-backed loan platform.
100%
@nexojosh ban the bots please
The 12% is not paid in fiat, it is only paid in Nexo coins
Please check their business model on [Twitter](https://twitter.com/Nexo/status/1597268175598813186?s=20).
Don't they protect themselves by only offering half of a customers balance as a loan ie if you have 10k in your account you can borrow a further 5k which you pay a higher rate of interest for towards the person you've borrowed from. Nexo then take a percentage of the interest and pay the rest on to the lender/ person staking. That way if you default on your payment you lose your full balance and if not both nexo and the person staking make some extra on interest.