I've joined Nexo since 3 months where I've put 4 BTC to earn those juicy interests.
I was really happy as interests were paid in NEXO which greatly appreciated over those 3 months.
The, the following events arrived, in that order :
- The recent topics about the shit hitting the fan with the Nexo automated ORACLE, which sold users cryptos as ETC tanked to ~700 on Kraken
- Don't get me started about why they would have sold some users Bitcoins as well ?
- Why their so-called Oracle relies on only one exchange price to calculate LTV ?
- This is at this moment I knew something was up and that I couldn't trust them with my money ; withdrew 4 BTC to my cold wallet
- I did withdrew because I felt that if too many users were impacted, Nexo HAD to buy back those cryptos at spot price, which could really impact their finances
- Too many users thinking like me could end up in a bank run ; hot wallet would need to be replenished in a time where their operational team is busy dealing with this collateral liquidation mess
- No visible PR communication on their website nor the platform ; only posts on Telegram and Reddit.
- My withdraw was stuck in the mempool for more than 24 hours ; guess what, Nexo isn't even able to adjust their transaction fee dynamically. As the BTC price tanked in the last days, transaction activity went up as well as the mempool size.
- I knew this is no big deal ; Nexo always had the choice to RBF or CPFP the transaction and bump the fee ; however I've read on this sub that their ticketing system is overloaded and chat people told other fellows to "wait for the technical team to look into it"
- People complaining about the app / website being slow, crashed
Maybe in the future, competitors will be under the very same issue. In the mean time, I have a weird feeling of a business ran by amateurs.
This is a very competitive and crowded space. Don't get (trivial) technical issues get in the way or your competitors WILL steal your hard earned market shares !
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