It is estimated that the digital asset market, which consists of currencies like Bitcoin, Ethereum, and Litecoin, will grow to a staggering US$5 trillion by 2058. This domain has been growing steadily and has drawn interest from a plethora of investors, miners, and entrepreneurs in just two to three years. Even though blockchain technology has yet to gain widespread acceptance, this sector is projected to reach an even higher overall market capitalization as that happens.
Nexo is an all-new blockchain-driven platform that aims to provide interested users with instant crypto-backed loans. As things stand today, there are no ways for digital asset owners to utilize their crypto holdings other than to sell them at lucrative rates. Nexo makes use of a highly innovative business model wherein users can retain 100% ownership of their digital assets while having immediate access to cash.
According to the company, these instant crypto-backed loans are an “automatic, flexible and cost-efficient means of obtaining liquidity that is secured by the value of the client’s digital assets.” The entire process of procuring loans is simple and can be completed within a matter of minutes. Some of the key benefits of using Nexo include:
- No hidden fees
- No capital gains taxes
- No credit checks
Even a high level of transparency is ensured, since the platform utilizes blockchain technology, smart contracts, and algorithmic processes, all of which are executed via the native Nexo Oracle module.
Overview of the platform
- Nexo’s core dev and business teams consist of individuals who have been in the fintech sector for more than a decade.
- The company is strictly supervised by multiple European banking and financial services regulators.
- The Nexo advisory board consists of many prominent members of the finance industry, including the founders of TechCrunch and Polymath.
- The NEXO token is US-SEC compliant and is backed by the underlying assets of Nexo’s loan portfolio.
- Nexo has an easy-to-use UI which is bolstered by a high degree of privacy and anonymity.
Key Features
The NEXO token is a US-SEC compliant, dividend-paying, asset-backed security-currency which is backed by the underlying assets of Nexo’s loan portfolio. Nexo’s clients have the opportunity to receive cash instantly anywhere from various parts of the globe. Such a high level of asset liquidity is something which is not common in the crypto sector.
Key offerings of this platform
While withdrawing large amounts of physical funds is still difficult using Nexo, the company provides its retail clients with a free credit card that can be used for making daily transactions. Also worth mentioning is the fact that with Nexo’s instant crypto loan service, customers are able to maximize their capital gains and other benefits.
Owners do not have to pay any platform, transaction, or withdrawal fees, all of which are commonly charged by other service providers. Furthermore, since there is no sale event, additional taxes which would otherwise comprise up to 39% of a user’s earnings can be minimized.
Overview of Nexo’s UI
Lastly, Nexo does not perform any credit checks that could potentially damage one’s credit ratings. This is made possible by the fact that crypto loans are completely secured by the value of digital assets stored in the Nexo Wallet. Not only that, original ownership of digital assets is secured and guaranteed by transparent loan contracts, which are immutably recorded onto a blockchain ledger.
How it Works
Nexo’s business model is unique and was devised to provide clients with instant crypto loans, thus unlocking the true value of digital assets.
Visual representation of how the Nexo ecosystem works
For starters, the client is required to transfer their held crypto assets to their Nexo wallet. Subsequently, relevant blockchain confirmations for the crypto assets in question are carried out, after which the Nexo oracle automatically calculates details pertaining to individual loan limits and then sets up the loan for the customer.
The client then receives their requested loan amount in either USD or EUR. The loan limit is instantly available by bank transfer or via the free Nexo credit card. Also, depending upon the needs of particular clients, they can choose the most convenient way in which to use their cash, as well as the currencies in which they would like to receive the funds.
However, the loan limit is based on the market value of the crypto assets in the Nexo wallet. Thus, if the value of the currency in question were to appreciate, the Nexo oracle would automatically increase the loan limit.
Lastly, clients have the ability to repay their loans in a host of innovative ways including:
- Bank transfer
- Physical exchange of funds using fiat or crypto assets
Special discounts on interest rates are granted to those choosing to make payments with NEXO tokens.
About the team
Kosta Kantchev is the co-founder of Credissimo, the company that governs Nexo. He has been in the European fintech sector for over a decade and, according to his online bio, was an early adopter of bitcoin. He has also been associated with a host of blockchain projects that aim to allow loan repayments in cryptocurrencies worldwide.
Vasil Petrov is the CTO of Nexo. He has over 16 years of experience in niche domains such as:
- System administration
- Back-end development
- Architecture design of high-load and full-cycle projects
In addition to his work at Nexo, Vasil has also co-founded a US multichannel video and internet service that currently boasts more than 150,000 customers.
Token Performance Details
All transactions taking place within the platform have the potential to be governed by a native currency called NEXO.
Nexo token lifetime performance data (courtesy of CoinMarketCap)
Introduced into the crypto market just under a week ago, the price of a single Nexo token has remained relatively stable. The currency hit its value high on May 3 when it touched a price of $0.268 per token.
Final Thoughts
With Nexo providing customers with a fully operational instant lending platform which adheres to the strictest KYC and AML global compliance standards, it would not be surprising to see this service do well this year.
However, before investing big in this project, individuals should do a bit of research on their own and determine the pros and cons of this venture for themselves.
If you would like to start investing in this project, NEXO tokens are currently being traded on IDEX.
