Nexo offer 5% interest on chainlink deposits. This was always highly suspect as demand for chainlink borrow is next to nothing and is trading at 0% on Aave. Either they have been subsidising chainlink deposits with funds from elsewhere or they are paying new users with old users funds or are converting the chainlink into higher yield currencies (fiat) or speculating.
The recent events make it look highly likely that the latter was the case. Nexo likely do not have enough chainlink to cover all user deposits. In other words, nexo has less chainlink than users have deposited on the site.
This is fine when all currencies are relatively stable but after the recent chainlink rise it likely means nexo are in significant negative equity on their link deposits. They’ve likely taken a huge hit. It’s noteworthy that they have stopped paying interest in LINK and this further confirms the theory.
This would explain the recent short report, they certainly would benefit from a decline in LINK.
They were selling user LINK >take out link loan >send it to binance >"oops we don't have any link on exchanges right now sorry service not available wassowassowasso"
>Nexo offer 5% interest on chainlink deposits why?
Camden Long
>why? because they are running a fractional reserve ponzi
Jason Gonzalez
OK so we have figured out their motive, means and opportunity. What now?
Aaron Thompson
This is gonna be ugly. Feel sorry for anyone that was using them. I know anyone can use Chainlink but at this early stage, Chainlink won’t look very good either.
Landon Cox
That is the whole point of the service, they pay users interest on deposits while loaning those deposits out to others at a higher interest rate.
You are onto something here. They likely were never speculatively short. Based on their statements all loans are denominated in USD. Crypto deposits are immediately sold and converted to USD. Loans and interest payments going out are converted from USD to that equivalent crypto requested for payment.
Link’s big jump caught them with their pants down because they don’t lock the Deposits at the UsD value at the time of deposit. As link spiked they ended up with a massive liability on their books.
The fud was likely a panic move to try and crash the price to eliminate that liability.
Nathaniel Miller
So fucking pissed the moon mission is derailed by this shit.
I keep waiting for the recovery pump but I don’t think it’s coming.
Chase Hughes
Maybe they will learn there lesson and not partner with just anybody. Take MOAB token partnership as an example.
Jeremiah Sanders
Digits confirm. What a bunch of shitsticks.
Luke Wright
they posted on tg that link withdrawal has been locked because they have no liquidity anymore while previously having claimed the chainlink aave loan was for liquidity holy shit they're totally underwater
Carter Hill
They literally took a LINK loan on aave, sent it to Binance and claim it's not there anymore. If that doesn't prove they are actively short, I don't know what does. It's likely they tried the short+FUD for net buy-in later as a last ditch attempt to try to induce panic to recoup otherwise fatal losses from both fronts, hence why the wallet activity matches the report being published.
Eli Brown
as more details that come out about this dumpster fire, it just keeps getting better. the Nexo Saga needs to immortalized within the larger Link mythos. truly a delight to watch this shit go down.
The shittiest part is it looks like it’s going to work. They’re at least going to get away with shorting LINK for 5 million unless a green dildo comes out of nowhere and I am literally praying it does.
FUCKING LINK TEAM NEED TO DO SOMETHING
ANNOUNCE SOMETHING, ANYTHING
it’s not just Nexo making it or not their artificial interference and SCAM is fucking a LOT of people out of money right now when organically that shouldn’t have been the case.
I wish someone would do so SOMETHING because they’re literally getting away with it right now if they haven’t already.
Lucas Diaz
Get the twitter faction in on this too, it'll work 100% if this theory is correct as long as they don't close their position.
Anthony Hernandez
that mouse got a nice ass
Matthew Ortiz
I’m in
Easton Collins
I will funnel everything I have in shitcoins into LINK if we had a coordinated pump.
I want to ruin these fuckers.
Joseph White
Yeah the best way the Chainlink team could combat this without getting entangled legally for speaking out publicly is to announce something big early. It would be extremely based if they did that but I don't think they will. The info is out there now, even if they get away with it in the market sense they've been exposed in the process. The case is pretty much closed. It just takes anyone to see the money in play in prosecuting them for it.
imo the pressure point should be the newsletter if it can be proven the mails originated from nexo, serious legal action could be taken user data is not something you can fuck with with impunity
Andrew Price
I would too, I've got about 50k myself I can throw in. I've always thought from the beginning Simeon was /one of us/ so there's a good chance they'll find out. Pretty sure we can force their hand at the very least if we execute within 2 days which should be enough. Other people might abuse the situation and put in their own sell orders.
no technically they can deny the code means anything, its a public code and could have been planted but a third party couldnt have had access to their private mail data
Michael Clark
CZ could be our hero if he turns off the bots
Asher Brown
>They were selling user LINK of course if you don't have your chainlink on a hardware wallet, then you HAVE TO BE RETARDED! I mean, how many times do we need to repeat this mantra:
I think it’s time for Sergey to break out a little of that Bitcoin we all know he’s hiding and pay back these fuckers for trying to shit on his timeline.
It’s ok to flex a little dude when you’re shown such blatant disrespect. Nexo took a gift partnership and shit on it.
If we'd have the sourcecode of the fud mail and the sourcecode of any newsletter mail we could be lucky and they might have sent them from the same mailserver.
Brayden Morales
forget Nexo Linkpool is the one to look for staking
Sell side on the order book on Binance is pretty thick. We'll need 90k LINKs just to get to 8.02. Price to short squeeze is prob $8.50+. Idk if biz can pull this off with our neetbux.
Ryder Perry
We're autistic enough to add a few 0's on the end of that
Isaac Davis
Have some faith, newfag. In early 2018 we drained binance's link hot wallet just for fun.
Logan Cruz
Chainlink didnt partner with Nexo. Nexo claimed partnership. Chainlink just stated "they are using our service".
Someone get this to the twitterfags immediately. They are the bridge to getting this knowledge from our autism to the rest of the world - and eventually the Chainlink team and the one who holds satoshi's wallet therein.
Camden Wright
If you guys coordinate a biz pump, I'll convert all my btc and eth into link (should come out to around 1k link)
Dont we need to make sure simone doesnt find out though? I'm sure nexo is lurking every thread right now
Ethan Wilson
I was fkn there. I've prob got more LINKs than we need to buy to short squeeze them sitting in my cold wallet which is the issue. Pretty sure most of our capital is already tied up in LINK. I still want to do this regardless for the lulz.
