Thread by @defihumair

🚨🚨Nexo High-Yielding Crypto: The Next Luna After the #FTX Collapse?

#Nexo has come under the microscope for its high-yield-bearing crypto products.
$nexo #BlockFi
🧵👇

1- The concerns come a month after the co-founders assured that the platform is solvent.
We all Know about #Luna $UST 20% APY is also not sustainable, Nexo’s double-digital yields can’t be sustainable.
$nexo

2- Crypto lender $Nexo is being sued in the London High Court by a group of investors. The investors allege that the firm blocked them from withdrawing over $126 million worth of crypto.
coindesk.com/business/2022/…

3- They claim that $Nexo froze their accounts after they sought to remove their assets from the platform.

4- Over the previous month, the California Department of Financial Protection and Innovation has filed a “cease and desist” order against $Nexo. Agency says Earn Interest Product from Nexo was not a qualified security.

5- NEXO Paying double digits yield on Stablecoin in this bear market.

https://twitter.com/DylanLeClair_/status/1596948568329588736?t=aFt-hianS8-MFfs5WpktHw&s=19

6- $Nexo currently offers a stablecoin yield of 10%, while Defi yields only 1%.Prior to Terra’s demise, Luna was also offering a double-digit APY of around 20%; this is insane, & now this bear market is being accompanied by bad events such as Luna, #FTX, & now #BlockFi’s bankrupt

7- The comment in this below-the-fold tweet shows Bankless David Hoffman crying after experiencing back-to-back crypto fraud, but they promote $Nexo, which offers 16% APY. LOL 😂🤣

https://twitter.com/BTCGandalf/status/1596961760128700416?t=5ezihuYRhWVGTXvhgdLxeQ&s=19

8- According to the dune dashboard, The company controls over 82% of the total supply of its tokens. This means that the platform’s backing could be compromised if liquidity issues mount.
$nexo

9- Following #Blockfi Chapter 11 bankruptcy. According to the chart, the price drops when social volume is high, indicating that everyone is afraid of $Nexo, which is why social volume is against the price.

10- Stay away from the so-called Crypto Lender, which is a Ponzi scheme, because the Yields come when token becomes more mint; this is referred to as a higher Yield, which is never sustainable because the Yield becomes more inflationary & illiquid.
$nexo cryptoavanza.com/nexo-high-yiel…

@UnrollHelper