NEXO Seeks $3B Revenge
If you are in crypto, you need to secure your coins as the digital world can take everything from you in a single minute. Many new investors use centralized exchanges to keep their coins. However, this might be one of the worst ways of securing your digital money because we have a terrible history of MtGox and FTX bankruptcies.
To find a solution, the cold wallets and hot wallets are designed and used by millions of somehow experienced users. By having a ledger or using a metamask wallet, you can use and track your assets without a third man between you and the other crypto people, exchanges, and dApps.
NEXO came up with a brand new concept: Crypto Banking / Crypto Lending Operations!
The platform offers you staking rewards and collateralization of your assets by locking them for a certain period of time 🔥
This sounds like an amazing idea but there are high risks for both parties. First of all, as a customer, you have to trust the company and their operations' health. They should never use the funds of customers but also make gains with their operations. It may sound like impossible but NEXO has been making it for several years.
On the side of NEXO, the policy makers went harsh against it.
The reputation of NEXO was damaged
First of all, the Bulgarian policy makers investigated NEXO company and during their failed investigation, neither the market nor the crypto people treated well to the company. As a very old user of NEXO, I can clearly say that the FUD over NEXO was massive and disruptive.
NEXO did not want to be okay with the destruction of its popularity and positive atmosphere, now NEXO filed a legal document against the Bulgarian government over 3B for reputation damage that the company and the team suffered.
Simply, the team is seeking justice.
Honest Observation
NEXO had never failed me while I was an active user of the platform. Whenever I had some BCH, I used to send them to NEXO to utilize its promising APR for the coin that I was holding. I did not choose to lock them because I was trading the coin actively.
NEXO offered a lot of opportunities and the coin gained a lot of value to let me make a good profit. Unfortunately, as a result of the growing FUD around NEXO, I withdrew all my coins and stopped using them. For 5 years, the team suffered a lot because of every single negative news about the platform. However, when we come to today's crypto ecosystem, NEXO is still operating without a major issue in the platform's lending and borrowing operations. As a centralized platform, it, inherently, has a couple of disadvantages but there was no need to destroy its reputation during the investigation.
I will never use the platform but I do not also think that there will be a big issue with NEXO, either.
What do you think about the case between NEXO and Bulgarian policy makers?
Share your ideas below 👇
Hive On ✌🏼
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