Nexo.io

Handy20

Does anyone know or used nexo.io for GBP savings? they're offering 12% interest. not interested in the Crypto or loan side of things they offer as. Any info would be appreciated

Thanks

underground99

Handy20 said:

Does anyone know or used nexo.io for GBP savings? they're offering 12% interest. not interested in the Crypto or loan side of things they offer as. Any info would be appreciated

Thanks

The 12% is only if you are also staking Nexo and getting paid the interest in Nexo tokens. Otherwise you get a lower amount.

While 10% might be tempting, they are not a depositary institution with FSCS protection. Instead, your money put into their 'savings' wallet is supported by  "asset-backed portfolios of overcollateralized loans". This means the money you give them is used within their business to support a lending operation and they are lending against assets . Overcollateralized means that the person who has borrowed has more collateral than what they borrowed. However, they are operating in the crypto space. Even if the asset values that are apparently there to support you getting your money back are allegedly worth more than your cash today, cryptocurrencies can rise or fall 80% in value in a weekend. The fact that collateral is 'subject to custodial insurance' just means that the nominee or custodian holding the assets is insured for losing them.  But the risk is not just that they lose the assets - it's the risk that the assets are still there and worthless. 

For example, say the loaned assets or collateral supporting you getting your £1000 back are 3000 Dogecoins. Today they are worth $0.33 each, so your money is fully 'asset backed', as long as nothing goes wrong. This time yesterday morning they were worth $0.41 each, so you were 25% 'overcollateralized' but you're not any more. If the coins go back to being worth $0.008 each, as they were worth three months ago, you have 98% fewer assets supporting your balance. Oops 

The custodian of the coins can have $100m of indemnity insurance from 'Lloyds of London' or some other credible insurer, that insures them against losing the assets. But the issue is not that the coins can't be found, it's that they can be found but are worth nothing like as much money as you have in your 'savings wallet' so they can't afford to pay you out.

If you are 'not interested in the crypto side of things', don't go anywhere near this 'opportunity'.

MaxiRobriguez

Avoid being scammed. Whenever departing with your money, ask first:

1) Is it FSCS protected?
2) Is the interest rate/potential gains in line with the wider market?
3) Is it a "normal" investment - like shares or bonds or is it definitely in a safe bank/savings account?
4) Have you checked the company/investment on google for potential scams?
5) Did you search for and find this opportunity?
6) Are you sure you're definitely not being pressured to part with your money?

If you answer "no" to ANY of those six things, be wary. If you have any lingering doubts, no matter how small, DO NOT GIVE THEM YOUR MONEY.

DrSyn

1. Low risk savings protected by the FSCS scheme up to £85k only come from regulated Banks, Building Societies & Credit Unions. While NS&I is 100% protected by the goverment.

The best 5 year interest rate at these is about 1.4%

2. Investing where money your is at risk, is not protected by the FSCS scheme. 

   FTSE 100 yield = 3%

3. So interest rate = 12% 
 Common sense tells you that anything with this rate would either be a very high risk investment or a scam. Neither of these two would be covered by the FSCS.

Albermarle

Sounds like P2P but using crypto as collateral rather than property, jewelry etc 

What could go wrong ..........

BearWhite

I use them and have done for about a year. They seem reputable to me, they've always paid out interest on time and seem fairly transparent.

Obviously if you use them there are plenty of things that could go wrong so don't put in an amount you're not comfortable with. I split my Crypto assets between Nexo, Blockfi, Celsius and Crypto.com to reduce the risk of losing my money via a hack, etc.

redpete

Another post from a new user asking about Nexo (suspiciously high interest rate claims, not a protected investment, unbelievable claim that they are risk free...), almost a campaign.

ColdIron

I haven't marked it as spam as MSE comes close to the top of Google searches and I think it's useful for people to find these things easily

Notepad_Phil

ColdIron said:

I haven't marked it as spam as MSE comes close to the top of Google searches and I think it's useful for people to find these things easily

There's a post from a week or so ago that is at about a dozen spam reports but it's still there - so not sure that reporting them does much anyway.

maxsteam

Scam. There's no physical address anywhere obvious on their website. There's no proper company name anywhere that I can find. There's no registration number for a company or a regulatory authority. They claim to be licensed and regulated but their website does not make it obvious which body actually licences and regulates them.

Eyeful

Their contacts link does not work. However links extolling cryptocurrencies do work.