Nexo.io @ 6.5% - is it safe?

TBC15

I’m holding out for 10% risk free:rotfl::rotfl::rotfl:

doe808

saverT86 wrote: »

Nexo.io recently announced that they are launching a EUR savings product with a 6.5% interest compound rate, paid daily. It's easy access, but requires a minimum of 5000 EUR to deposit.

They claim to be risk free, with the following explanation:

"By successfully topping up your EUR balance, you agree with the General Terms and Conditions of Earn Interest Product and you automatically exchange the top up amount's EUR equivalence to EURx with a guaranteed 1-to-1 conversion rate to EUR at all times. You earn risk-free compounding interest of 6.5% per year, paid out daily, on your EURx which is secured at all times by asset-backed portfolios of overcollateralized loans. The collateral of each loan is subject to custodial insurance of $100 million provided by the world’s leading audited custodian BitGo and the insurance leader Lloyd’s of London. Upon receipt of a EUR withdrawal request, the EUR equivalent of EURx is automatically exchanged to EUR at the guaranteed 1-to-1 conversion rate and the EUR is sent to the bank account designated in the withdrawal request."

From their IBAN, they seem to be based in Lithuania.

With the ability to transfer money into Euros easily via Revolut, this could be a very good savings product. But is your money actually safe?

Don't be so ******* stupid.

kinger101

Look at all the fantastic reviews.

https://www.trustpilot.com/review/nexo.io?utm_medium=trustbox&utm_source=Carousel

Not all all suspicious that they've come from people whom have contributed only a single review.

AnotherJoe

Equally hilarious look at this the first (most recent review) gives them 5 stars !! Presumably if they killed her first born she'd still give them 4 stars

5 stars: Excellent
Updated 11 hours ago
I invested 35$ in Nexo Trade
I invested 35$ in Nexo Trade. I reinvestedbell every 48 hours. When I had 364$ I wanted to withdraw. My withdrawal is pending for about 3 weeks now. I get no response whatsoever when I query on their customer support ot even send a mail to their admin. This is bad for me as I trusted them I am a pensioner and cannot afford to loose my.money. Mari Smith

mrlukeduke

From Reddit: 

The catch is the following one:

The Bitgo insurance is only valid for borrowers and lenders in Crypto currency, this insurance does not cover fiat currency, so for all legal effects you are lending money to a limited company registered in Zug (Switzerland) at the address of a lawyer (since Nexo management actually resides in Bulgaria) with just 100k eur of subscribed capital and NO guarantees from Credissimo and absolutely no security on the crypto loans. In case of any issues you would only have a claim against what appears to be a very under-capitalized Swiss company with no audited accounts. 

They are a very opaque company and the credit risk is high, that is why they pay 8% on fiat currency deposits.

I tried to post a full due diligence I performed on the company, but it was removed on the public forum which is moderated by (surprise) Nexo itself.

So make of that what you will! That said...

Personally I've allocated a SMALL amount of HIGH-RISK capital to see how it operates, test it out and play around, and I must say – I've had no issues with payouts in three months of use, i.e. they've delivered thus far as advertised. And the app and overall experience is... absolutely superb.

BUT... I take it for what it is, a super high risk high reward bet on a company and business model that could go belly-up at any moment. It's sort of like "investing" in bitcoin! It could go to zero tomorrow, on nothing, with no backup or insurance – !!!!!!! There it goes evaporating into thin air! 

Anyway just my 2p as there were some trolly sarcastic comments in here and I wanted to give a more balanced view after having actually used the product. Stay safe out there!

Thrugelmir

Sounds like a classic ponzi scheme. 

mrlukeduke

Could be! If so, I find it odd how brazen they are, as I'd have thought (naively?!) that the combination of (1) "crypto" and (2) lending/interest products would be MEGA RED ALERT on the UK's Financial Conduct Authority's computer database of very very naughty new companies. I have tried to contact the FCA and Nexo, btw, but yet to hear back.

They recently posted the following after adding GBP deposits. For what it's worth, i.e. take a MASSIVE PINCH OF SALT, here's what they say: 

Moreover, with Nexo, you do nоt have to worry about risk-taking behavior, levels of unserved debts or limits on deposit protections. Unlike the incumbent banking institutions, our balance sheet is overcollateralized with digital assets.

We hold 200–500% of the face value of our assets as collateral, making Nexo extremely resilient to severe stress across the financial system. With traditional banks, your downside risk protection is an FDIC insurance of up to $250,000 in the US and €100,000 with the DGS in Europe. In contrast, Nexo does not treat large accounts differently as every dollar lent out is substantially collateralized by liquid assets, making Nexo an excellent option to store large amounts of wealth even in fat-tail risk environments.

I mean... *shrug* 

EDIT: Also trying hard to verify THIS little gem I found on their website: 

Alexland

mrlukeduke said:

Personally I've allocated a SMALL amount of HIGH-RISK capital to see how it operates, test it out and play around, and I must say – I've had no issues with payouts in three months of use, i.e. they've delivered thus far as advertised. And the app and overall experience is... absolutely superb.

I wouldn't even give them my name for fear of ending up on a suckers list for other 'opportunities'

dcs34

mrlukeduke said:

Could be! If so, I find it odd how brazen they are, as I'd have thought (naively?!) that the combination of (1) "crypto" and (2) lending/interest products would be MEGA RED ALERT on the UK's Financial Conduct Authority's computer database of very very naughty new companies. I have tried to contact the FCA and Nexo, btw, but yet to hear back.

They recently posted the following after adding GBP deposits. For what it's worth, i.e. take a MASSIVE PINCH OF SALT, here's what they say: 

Moreover, with Nexo, you do nоt have to worry about risk-taking behavior, levels of unserved debts or limits on deposit protections. Unlike the incumbent banking institutions, our balance sheet is overcollateralized with digital assets.

We hold 200–500% of the face value of our assets as collateral, making Nexo extremely resilient to severe stress across the financial system. With traditional banks, your downside risk protection is an FDIC insurance of up to $250,000 in the US and €100,000 with the DGS in Europe. In contrast, Nexo does not treat large accounts differently as every dollar lent out is substantially collateralized by liquid assets, making Nexo an excellent option to store large amounts of wealth even in fat-tail risk environments.

I mean... *shrug* 

EDIT: Also trying hard to verify THIS little gem I found on their website: [snip]

It means someone who works there was once in the same room as someone who may have worked for Deloittes.