$3.19 -13.21%
NEXO · 3w

A thought on the future of fixed-term contracts with Nexo.

I seen in an AMA the other day that Nexo is considering adding 3/6/9/12 month fixed term contracts to lock up crypto (maybe different but you get the idea). So I see one of two things happening: 1) Nexo changes the terms of the loyalty levels. So for example, maybe all loyalty tiers get a base rate of 2% interest and then it scales up to the 6-8% the longer your crypto stays in a fixed contract. For me, this would essentially get me off the platform. But it’s a reasonable expectation because from a management perspective you want to reduce uncertainty, so if Nexo had it their way, everybody would volunteer to lock in for one year, which would drastically reduce uncertainty. 2) Assuming that things remain as they are and longer term agreements are introduced, Nexo would need to increase the interest earned. I would actually consider this favourable, because there’s an increased incentive for the user to lock up their funds. Otherwise, there’s really no point in doing anything longer than a 1 month fixed-term with automatic renewal. It will be interesting to see how things play out. But Nexo already did a minor slip with surprising us with fixed terms, so I suspect that option 1) is more likely than option 2). But who knows.
Go to self.Nexo
Recent news
NEXO -13.21% · · 18h

Get Your Nexo Card Earlier

The world’s first card that allows HODLers to spend the value of their assets without selling them. Get early access now!