Is Nexo a pyramid scheme?!

NEXO is definitely not a pyramid scheme, if it were, how is it functioning like one? I’m not buying anything from Nexo to sell or refer anyone else to use it.

I can’t really give you more advice, just from my experience using it, talking to various team members at Nexo, and being in the Nexonians groups I haven’t ever had a single doubt or worry that my assets were at risk. (Well no, sorry, apart from a few hours a few weeks ago when the mistaken automatic liquidations happened. As there was no official response for a few hours I got worried the repayment of assets could seriously hurt them, but they announced that Kraken was covering all costs for the f.. up so all is well).

Is it a perfect platform? Nope. It has it’s flaws. Company-wise, communication could be a lot better and they keep saying it’s something they are working on, and then they do something really silly without announcements and take 2 steps back in the communication part. (Update: Nexo has vastly improved it’s communication since it’s early days, now they announce changes in advance, and are much more open to communication and feedback!)

As for the platform itself, I’d say things like address whitelisting (Update: added!), per-asset earn in kind or in nexo selection, credit card (Update: added!), and a bunch of other things are missing.

That being said. It’s hands down the best platform for earning and taking out loans, period. Does it have the absolute best rates? No, especially compared to DeFi alternatives. But is the app 99% flawless, easy to use, intuitive? Yes!

Other CeFi lending/earning platforms have major downsides, or their platforms just suck to use. Want a loan from Celsius? That’s a minimum of 6 months please. Oh and want to repay it or close it? Gotta email the support and wait ages for a response. In NEXO? 1 month minimum loan, loan comes out in 10 seconds (no joke, my recent usdc loan got credited in 8 seconds), and repayment is all instant within the app. No troubles or hassles.

Earning-wise, it’s so much simpler to use as well. No blocking from withdrawals for 24 hours (blockfi), FIAT withdrawals are the fastest I’ve ever experienced ever. I sold some assets and requested the fiat bank withdrawal, it arrived in just a few hours. It’s unreal.

I’d say, in essence, no, it’s definitely not a pyramid scheme.

August 21, 2022
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