Due to the current overload on the Ethereum blockchain and subsequent sky-high gas fees, we are temporarily raising our minimum stablecoin borrowing amount and limiting the number of free withdrawals on the platform.The details:
The minimum borrowing amount has temporarily been increased to $5000 for withdrawals in USDT and USDC.
Fiat borrowing minimums are not being raised and remain at $500.
In the next few weeks, clients in the Gold and Platinum Loyalty tiers will respectively receive 1 and 3 free crypto withdrawals monthly, while Base and Silver tier users will not be eligible for this bonus.
These changes are temporary and come into effect as of today, February 24, 2021.
We will reinstate our former borrowing minimums in approximately 4 weeks and restore our regular free crypto withdrawals policy once the load on the Ethereum blockchain eases.
Why Are We Doing This?
The current inefficiencies in the blockchain space are extremely costly to all stakeholders operating with the space – individuals and businesses alike. To illustrate, for a transaction in the ballpark of $100, Nexo covers $300 in fees, making it exceptionally unprofitable for the business and, as such, ultimately detrimental to our clients and investors.
To ensure our model remains sustainable even in such conditions, we are implementing the above-mentioned temporary changes while our team works tirelessly on a long-term solution, including integrations with other blockchains, to reduce future expenses. We expect to return to our normal borrowing minimums of under $100 within a month. As for crypto withdrawals, we will bring back our regular free withdrawals as soon as blockchain conditions allow.
In the Meantime…
If you are using our Instant Crypto Credit Lines™ to buy and sell crypto on exchanges but find that the raised borrowing minimum and limited free withdrawals are limiting your opportunities to do so, we recommend using the Nexo Exchange. This latest addition to our product line-up allows you to swap instantly between 75+ crypto and fiat trading pairs without leaving the platform, thus minimizing the withdrawal fees you may incur through multiple and/or external transactions.
The challenging conditions in the blockchain space today are exactly what will make Nexo even more robust, resilient and sustainable tomorrow. We look forward to returning to optimal conditions and introducing the long-term improvements we have planned in a few short weeks.