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8% Interest savings rate

Ultra Tempest

Anyone tried the Nexo crowd? nexo.io

They claim to offer 8% AER interest on savings paid daily with instant access to your savings.... seems too good to be true.

Especially when compared to the terrible rates offered by Irish banks, usually lacking instant access & the inability to top up your savings.

They don’t charge DIRT & claim there is no Capital Gains Tax to be paid supposedly.

The minimum top up amount is €1000 so in a day you’d earn 21c.

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NIMAN

I just checked out their website at https://nexo.io/earn-interest/eur

... and all the while I was thinking, "so where's the catch".

Hopefully someone with plenty of knowledge will come along and tell us what it is!

Joe Schmo

I haven't seen these guys before but this is how it works:
Person A owns Bitcoin. They deposit the Bitcoin with Nexo and receive an amount of EUR in return which they pay 8%+ interest on. The Bitcoin acts as collateral.

The EUR came from person B, who deposited the EUR with Nexo and earn 8% interest on it.

To me, this it looks like Persons B EUR is not guaranteed by any central bank or investment protection fund. If Nexo goes bankrupt they all creditors (like person

should be made whole from the collateral of person A- assuming the value of that Bitcoin remains high enough to cover creditors and other expenses of a company going bankrupt.

There may not be DIRT due (because this is not a bank account) however there is likely a tax liability on the interest earned by person B.

I assume if Nexo was offering a bank account it would be regulated. However if it's not a bank account then what is it? Doesn't appear to be peer to peer lending as Nexo are likely the counterpart to Person A on the loan congrats that are issued (via blockchain). So of its not P2P I would assume that kinda leaves an investment product. Which would mean it should be regulated. Maybe the disclosures you receive when opening an account would explain why this product which looks like and acts like an investment should not be regulated like an investment product...

Wheety

If something sounds too good to be true...

NIMAN

Joe Schmo wrote: »

I haven't seen these guys before but this is how it works:
Person A owns Bitcoin. They deposit the Bitcoin with Nexo and receive an amount of EUR in return which they pay 8%+ interest on. The Bitcoin acts as collateral.

The EUR came from person B, who deposited the EUR with Nexo and earn 8% interest on it.

To me, this it looks like Persons B EUR is not guaranteed by any central bank or investment protection fund. If Nexo goes bankrupt they all creditors (like person should be made whole from the collateral of person A- assuming the value of that Bitcoin remains high enough to cover creditors and other expenses of a company going bankrupt.

There may not be DIRT due (because this is not a bank account) however there is likely a tax liability on the interest earned by person B.

I assume if Nexo was offering a bank account it would be regulated. However if it's not a bank account then what is it? Doesn't appear to be peer to peer lending as Nexo are likely the counterpart to Person A on the loan congrats that are issued (via blockchain). So of its not P2P I would assume that kinda leaves an investment product. Which would mean it should be regulated. Maybe the disclosures you receive when opening an account would explain why this product which looks like and acts like an investment should not be regulated like an investment product...

... and I'm out!:D

[Deleted User]

Got an email today from Nexo they upping their interest rate to 10% on deposits held in your wallet. That’s serious stuff. Have had a low 4 figure sum in there for over a year now ticking away earning 8% PA paid daily without issue and the company appear very solid with their CEO regularly on things like Bloomberg etc.

This move to 10% was the push I needed to move larger sums over to Nexo as it’s just free money (this is house deposit money etc that I don’t want locking into investments), 100 euro for every 1000 on deposit is a serious return for what is no risk from what I can see.

Really surprised I’m not seeing more people talking about it or using it.

Rodney Bathgate

A scam involving crypto? There’s a first.

[Deleted User]

Rodney Bathgate wrote: »

A scam involving crypto? There’s a first.

Scam involving crypto? Not here there isn’t.

Rodney Bathgate

Kamila Incalculable Museum wrote: »

Scam involving crypto? Not here there isn’t.

Yeah, let’s wait and see. I expect to read that Nexo’s wallet got cleared out by an insider at some point in the future.

super_furry

Joe Schmo wrote: »

I haven't seen these guys before but this is how it works:
Person A owns Bitcoin.

Aaaaaand I'm out.

[Deleted User]

Rodney Bathgate wrote: »

Yeah, let’s wait and see. I expect to read that Nexo’s wallet got cleared out by an insider at some point in the future.

Do you know anything about them? This is not some shady unknown company, they have serious traction now. Also deposits are all guaranteed.

y0ssar1an22

was gonna gamble €100, but the min deposit is €1000

[Deleted User]

y0ssar1an22 wrote: »

was gonna gamble €100, but the min deposit is €1000

As I said I’ve had a few k in there for over a year now constantly and I was also maxing my credit card into Revolut and transferring to Nexo for 50 days and then back out to pay off the credit and repeat so I’ve done loads of withdrawals also and they are very fast and smooth. This also maxed my cash back on the cc but has to stop as there is now a risk of the cc seeing Revolut as a cash advance which has high fees etc so not worth while.

hawaii501

Might gamble with 1k to see what the fuss is about.
Am I able to withdraw at any time?

Rodney Bathgate

Kamila Incalculable Museum wrote: »

Do you know anything about them? This is not some shady unknown company, they have serious traction now. Also deposits are all guaranteed.

Guaranteed by whom?

Plenty of crypto exchanges and other businesses were well regarded until they disappeared overnight. (I know they are not a crypto exchange before you point that out.)

y0ssar1an22

for every $1 we lend, we receive at least $2 in insured collateral, making your investments virtually risk-free.

is that not a ponzi scheme?

Sheep Shagger

Kamila Incalculable Museum wrote: »

Do you know anything about them? This is not some shady unknown company, they have serious traction now. Also deposits are all guaranteed.

By who and what is their credit rating/history?

You know what they say, if it sounds like **** then it probably is...

Buyer beware and all that.

One More Toy

Is there a referral system in place?

Sounds like a ponzi scheme to me

[Deleted User]

Mr.S wrote: »

Edit: After a quick research it would seem there is no deposits guarantee whatsoever, just deposit insurance that could cover partial funds under certain circumstances. You would be mad to deposit any meaningful sort of money there.

Comes down to risk / stupidity I guess, if you want to risk 1000's for the sake of 10% return.

Not quite "all deposits are guaranteed"

People just appear to want it not to be true.

I can tell you it’s not Nexo that is losing me money at the moment it’s my normal investments through leading organisations, that’s also all locked in not instantly withdrawable. As I said I’ve made multiple withdrawals, funds in my revolut account next working day.

Deposits are guaranteed by assets against them and an insurance policy that is quite clear.

Sheep Shagger wrote: »

By who and what is their credit rating/history?

You know what they say, if it sounds like **** then it probably is...

Buyer beware and all that.

All I can say it’s I’ve had money in there for over a year made multiple deposits and withdrawals and the interest appearing every day is not “too good to be true”. I’m going to move the majority of savings I have in cash in there bar a small amount I’ve decided. Only for I’ve other money tied up in traditional investments which I’ll be very lucky to get my own back in after 5 years I’d be putting in more.

One More Toy wrote: »

Is there a referral system in place?

Sounds like a ponzi scheme to me

It’s a much a Ponzi scheme as you local credit union. They pay high interest to encourage people to hold money so they can loan it out, quite simple really. Not sure what you mean by a referral system.

Just said I’d highlight this with such terrible interest rates in banks as people might be interested and to my surpise it’s not being talked about but it appears it’s all negativity.

Credit Unions are authorized to take deposits, and are regulated by the Central Bank. Suggesting they are a ponzi scheme is both wrong and dangerous

coylemj

Kamila Incalculable Museum wrote: »

Do you know anything about them? This is not some shady unknown company, they have serious traction now. Also deposits are all guaranteed.

Well that changes everything. I mean if your funds are guaranteed, I'm in.

Not.

coylemj

Kamila Incalculable Museum wrote: »

It’s a much a Ponzi scheme as you local credit union. They pay high interest to encourage people to hold money so they can loan it out....

Who are they lending to? If they're paying the type of deposit rates you're quoting, they can only be in the subprime market i.e. lending to high risk borrowers who can't get loan approval from the regular banks.

And in the current economic climate, an awful lot of those people are now unemployed. So guess what happens next?

HamSarris

Kilboor

Please don't put your savings for a house deposit all into that company. I'd honestly feel bad for you when they go tits up.

Fair play on the gains from the scheme so far though!

[Deleted User]

I obviously shouldn’t have bothered highlighting Nexo as people are just crazily dismissive of anything a bit different.

coylemj wrote: »

Who are they lending to? If they're paying the type of deposit rates you're quoting, they can only be in the subprime market i.e. lending to high risk borrowers who can't get loan approval from the regular banks.

And in the current economic climate, an awful lot of those people are now unemployed. So guess what happens next?

They are loaning to people who want fiat currency but don’t want to sell their crypto currencies.

To borrow you have to deposit cryptocurrency and if you don’t make your repayments they call in the loan by keeping the crypto that the loan was secured against.

Kilboor wrote: »

Please don't put your savings for a house deposit all into that company. I'd honestly feel bad for you when they go tits up.

Fair play on the gains from the scheme so far though!

It’s not all them only what I have sitting in deposit accounts earning nothing, the rest is tied up in other things most of which is more likely to lose money than gain anything despite being very much the type of thing people try to diss Nexo would be advising you to put money into.

Bubbaclaus

This is going to end in tears.

At least they are guaranteed tears.

coylemj

Kamila Incalculable Museum wrote: »

To borrow you have to deposit cryptocurrency and if you don’t make your repayments they call in the loan by keeping the crypto that the loan was secured against.

Well that puts a completely different complexion on it. And there was I thinking that it was all a scam, built on a financial house of cards.

If the money they take in as deposits are loaned out, with crypto currencies accepted as security, what can possibly go wrong?

bilbot79

Kamila Incalculable Museum wrote: »

Got an email today from Nexo they upping their interest rate to 10% on deposits held in your wallet. That’s serious stuff. Have had a low 4 figure sum in there for over a year now ticking away earning 8% PA paid daily without issue and the company appear very solid with their CEO regularly on things like Bloomberg etc.

This move to 10% was the push I needed to move larger sums over to Nexo as it’s just free money (this is house deposit money etc that I don’t want locking into investments), 100 euro for every 1000 on deposit is a serious return for what is no risk from what I can see.

Really surprised I’m not seeing more people talking about it or using it.

Is that you Nexo?

This sounds like that time Anglo Irish had a savings account with 7% interest

y0ssar1an22

i'll do some research on them tomorrow and try to make an informed decision

thenightman

When I googled Nexo, the first result was for a toilet. Says it all really!

One More Toy

Kamila Incalculable Museum wrote: »

People just appear to want it not to be true.

I can tell you it’s not Nexo that is losing me money at the moment it’s my normal investments through leading organisations, that’s also all locked in not instantly withdrawable. As I said I’ve made multiple withdrawals, funds in my revolut account next working day.

Deposits are guaranteed by assets against them and an insurance policy that is quite clear.

All I can say it’s I’ve had money in there for over a year made multiple deposits and withdrawals and the interest appearing every day is not “too good to be true”. I’m going to move the majority of savings I have in cash in there bar a small amount I’ve decided. Only for I’ve other money tied up in traditional investments which I’ll be very lucky to get my own back in after 5 years I’d be putting in more.

It’s a much a Ponzi scheme as you local credit union. They pay high interest to encourage people to hold money so they can loan it out, quite simple really. Not sure what you mean by a referral system.

Just said I’d highlight this with such terrible interest rates in banks as people might be interested and to my surpise it’s not being talked about but it appears it’s all negativity.

It's being talked about negatively because it sounds too good to be true. You're nuts if you're going to put all your cash in it, have you heard of bitconnect? If not Google it. Then Google 'high yield investment programmes'

[Deleted User]

thenightman wrote: »

When I googled Nexo, the first result was for a toilet. Says it all really!

No you didn’t.