Crypto.com earn 10% interest on tgbp

adam06_2

Hi all,

Anyone else using this?

I have recently put in a small amount as I'm aware of the risk due to no fscs protection. Tgbp is a stable coin tied to gbp.

tebbins

adam06_2 said:

Hi all,

Anyone else using this?

I have recently put in a small amount as I'm aware of the risk due to no fscs protection. Tgbp is a stable coin tied to gbp.

You're better off putting it on the 3.15 at Cheltenham, at least then you know your odds of making a 100% loss.
Do they explain how they make 10%?
If it's "tied" to GBP, what's the point in it, how can it be, who ties it, why even bother with small amounts for only 10% when crypto is generating explosive returns (apparently)? Why not just offer 10% in GBP? What's the advantage of going via a coin?

Aegis

Yep, I'd want to know where the 10% comes from.  I'm guessing it's from future deposits, which means this is basically a Ponzi scheme, and the reason it's being done in coins rather than GBP is that it's not legal to offer in GBP.  Obviously I could be mistaken, but any time I see something too good to be true, I assume it's a scam.

london21

I wouldn’t sticking to my funds for peace of mind.

Zola.

I wouldn't touch any stable coin with a 10ft pole personally...it boils down to an unregulated company gift card.

Gary1984

Oh yes, the magic 10% premium for providing 'liquidity in the market'. Despite the fact liquidity premiums on corporate bonds are about 1-2%. Its such utter nonsense to think you can make 10% risk free put of nothing and a lot of people will get burnt once new money stops rolling in.

User232002

Yes, we can compare the capital and liquidity of a new evolving market that has been shunned by traditional finance to a well established, ultra liquid one currently being propped up by central banks.

Seems a fair comparison. Crack on.

Adyinvestment

It really isn't that hard to understand, very similar to a bank except they give fairer rates.

Checking their site for someone with bottom account level status you get 6% interest on most stable coins, to borrow the same amount will cost you 12% interest (the levels change on terms)

So they lend money out at a higher rate of interest than they give on deposits...not exactly rocket science and certainly not a Ponzi scheme.

This is the reason I believe decentralised finance is the biggest threat to the banks and not crypto in general, and also why stable coins will probably eventually be heavily regulated (possibly a good thing)

jimjames

Adyinvestment said:

It really isn't that hard to understand, very similar to a bank except they give fairer rates.

Checking their site for someone with bottom account level status you get 6% interest on most stable coins, to borrow the same amount will cost you 12% interest (the levels change on terms)

Can you explain what you mean by stable coins? As far as I can see they are anything but stable. If I owned Zimbabwean dollars they might have similar sort of fluctuations

Adyinvestment

A stable coin stays the same price as its fiat equivalent, so if you buy £100 of TrueGBP whenever you sell it it will be worth £100

Eyeful

My Rule of Thumb on investment risk

Average Risk = FTSE 100 yield (about 4% at the moment)

Very high risk ( say goodbye to my money) = 2 x FTSE 100 yield = 8%

I would not touch it with a barge pole.