Luxor Offers New Way to Earn Bitcoin Returns Without Lending Risks
-
Luxor's upcoming hashrate-backed product offers 10-13% returns from Bitcoin mining rewards, not risky lending like BlockFi/Celsius.
-
Returns come from miners getting upfront financing and giving investors a cut of mining rewards. Luxor acts as intermediary.
-
Luxor stresses no Bitcoin rehypothecation; it custodies coins briefly when moving funds between miners and investors.
-
Product has inherent risks - investors take on counterparty risk with Luxor and miners. Luxor mitigates via diligence.
-
Investors should exercise caution with any product requiring them to give up control of their Bitcoin, per other lending firms.