Yesterday reddit user Ravens2017 shared Silo Markets brokerage which we have covered before. LiftBroski shared Symphony in response as it looks similar and it does, I’m not sure if that it is just the same AI design that is going around or if the companies are linked.
Symphony is a savings account that claims offers 5% APY and 2% back in transferable points. If that sounds too good to be true that would be correct, unlike other traditional savings accounts this is not FDIC insured. Instead they state:
“Funds held through our custody partners are protected by SIPC protection and supplemental coverage — not FDIC insurance”
The fine print states:
Any annual percentage yield (“APY”), rate, rate structure, reward, point value, redemption option, and product feature is variable and may change at any time, with notice where required. Yield depends on third-party Protocols, lending markets, collateral systems, liquidity venues, counterparties, and infrastructure, and may be affected by market volatility, liquidity constraints, counterparty performance, smart-contract or Protocol failures, operational events, and regulatory changes. Any displayed APY reflects a current, estimated rate only; it is not fixed or guaranteed. Past performance does not guarantee future results, and principal is not guaranteed. Where your funds are held in or converted to stablecoins, you also bear the risk that a stablecoin loses its peg or becomes illiquid.
From what I can tell this seems to be a mixture of AI and Crypto without properly disclosing the risks that are likely involved. If you’re happy with this level of risk your money is almost certainly better served in a different investment vehicle and if you aren’t happy with this level of risk you should be sticking to a basic savings account rate.
I’m somewhat surprised that these large scale loyalty programs are willing to align themselves with a product of this nature especially as I can’t seem to find any information surrounding major funding rounds they have completed. The press release states that ‘Symphony’s infrastructure has processed more than $500 million in volume and is used by fintechs, and AI companies‘.
