So I recently created a Nexo account, thinking about diversifying my portfolio from Celsius to spread out my risks. The NEXO token has been doing well in the tokenomics standpoint, where prices increased by 38.9% in just 30 days, from approximately $0.13 to $0.18.
The reason for the rise might be due to their attractive earn rates on their cryptos where you can earn 6% in kind if you have at least 10% of your portfolio in Nexo, which could be a factor in more members joining in, buying Nexo tokens and staked them hoping that Nexo can one day be like Celsius and have the Nexo token to inflate up to the moon.
Recently, Nexo sent an update on the earn program which brings Nexo's earn program even more identical to Celsius's plan.
Introducing Nexo's loyalty earn program. For a start, you will earn 5% APY on all cryptos and 8% on stablecoins and fiat if you deposit your funds with them. The interests are automatically calculated and rewarded into your wallet daily and compounded at a fixed time. If you start accumulating more Nexo tokens, you'll be upgraded to the Silver tier (1 - 5% in NEXO) and earn an extra 0.25% on your interests in cryptos and stablecoins; When you reached the gold tier (5 - 10% in NEXO), you'll earn another 0.25% and 0.75% on cryptos and stablecoins respectively, while the Platinum tier (>10% in NEXO) offers 6% on all cryptos and 10% on all stablecoins. What's more, if you choose to earn in NEXO, you can earn an additional 2% interests. Sounds very familiar.
I see some pros and cons in comparison between Nexo and Celsius platform in terms of the earn programs on both platforms.
The comparison shows Nexo is offering higher interests in almost all of the cryptos listed if earn-in-Kind currently. Notable ones such as Bitcoin, Ethereum, Ripple, ChainLink, EOS and many others are earning 6% interests, whereas the stablecoins are around 0.5% slightly lower than Celsius's rates.
Switching to earning in Nexo, you're still getting similar advantage where only stablecoins will have lower interests than Celsius if earned in NEXO and CEL. The only downside is that you don't get to earn any interests while holding NEXO, where the rewards are paid in the form of dividends where 30% of Nexo's earnings will be shared to the depositors in the form of base and loyalty dividends. The dividends structure is quite similar to owning dividend stocks, where an ex-dividend date will be announced prior to distributing the rewards. You can check the calculation from this article here.
So should you put your funds into Nexo? Currently, they are not as vocal as Alex Mashinsky in their Youtube page. They don't have weekly AMAs like what Celsius did, so you don't get new updates as often. I always believed in transparency, so Celsius is a win for me in this category in terms of how they are communicating with the audience, plus the highly anticipated Proof-of-Community will be a game changer in the CeFi space. Maybe Nexo might also follow their footsteps in this too. Note that Nexo's interest rates will change to optimize their profits similar to Celsius. Furthermore, the tokens that they are offering are very limited compared to Celsius. However, the interests earned in the Nexo platform speaks for itself. Nexo still has a lot to do to catch up to Celsius's achievements, but competition is good for both companies to succeed and bring more investors in the crypto space.
In my opinion, if you're not thinking about changing platforms now, don't sign up yet. They are working on a referral program for new users to join, so be sure to stay tune until this happens. Likewise, If you want to get $20 free BTC, you can sign up to my Celsius's referral code to start your HODL-ing journey.
