Nexo is a blockchain-based overdraft system that allows users to make instant crypto loans. At the moment, there is no other way in which crypto owners can use their assets other than selling and buying them. Nexo comes forth with a very lucrative business model where it lets crypto owners use their holdings as collateral, then withdraw cash. The users maintain a 100% access to their cryptocurrency while they have immediate access to cash. At the same time, they can access the value of their crypto assets.
Nexo was created by Credissimo, a leading FinTech group that has been serving millions of users from all over Europe for more than a decade. That company has given out loans worth of $120 million since its foundation while amassing $155 million in cash.
The company is regarded as a market leader in the online consumer lending industry in numerous European countries. So far, they’ve processed 1 million+ loan applications and granted 79,000 loans in 2017. 78% of its traffic is generated by its recurring customers.
How Does Nexo Work?
Nexo brings together instant loans with blockchain technology, resulting in the world’s first instant crypto loan system. Nexo’s innovative business model was created to provide clients with instant crypto loans, being an “automatic, flexible and cost-efficient means of obtaining liquidity that is secured by the value of the client’s digital assets.”
The whole process of obtaining loans is simple and can be done in just a couple of minutes. The primary benefits of using Nexo include: no hidden fees, no capital gains taxes, and no credit checks.
A high level of transparency is guaranteed, since the platform uses blockchain technology, smart contracts, and algorithmic procedures, all of which are performed in its native Nexo Oracle module.
First, the client has to transfer their crypto holdings to their Nexo wallet. Afterwards, the cryptos which they transferred will be confirmed by the blockchain, after which the Nexo oracle automatically computes details related to individual loan limits and then establishes the loan for the user.
The client then is given his requested loan amount in either USD or EUR currency. The loan limit is promptly available via bank transfer or through the free Nexo credit card. Clients can also choose the most suitable way in which to use their money, as well as in what currencies they would like to receive the loan.
However, the loan limit depends on the market price of the cryptocurrency in the Nexo wallet. Therefore, if the value of the currency used were to rise, the Nexo oracle would automatically raise the loan limit.
Finally, clients have several options in which they can pay back their loans, including:
- Bank transfer
- Physical exchange of funds using fiat or crypto assets
- Special discounts on interest rates are given for those that make payments with NEXO tokens.
Nexo’s users benefit from a high level of asset liquidity which is quite uncommon in the crypto sector. While withdrawing bigger sums of physical capitals is still difficult, the company offers a free credit card to its retail clients, which can be used for making daily transactions. Also worth noting is the fact that by using Nexo’s immediate crypto loan service, clients have the option of making the most of their capital gains and take full advantage of other benefits.
Owners are not required to pay any transaction, platform or withdrawal fees, all of which most providers usually charge for their services. Also, additional taxes which would consist of up to 39% of a user’s earnings can be reduced, since there is no sale event. Lastly, Nexo does not carry out any credit checks that could possibly depreciate a user’s credit ratings. This is made possible due to the fact that the value of crypto assets deposited in the Nexo Wallet completely secure the crypto loans.
In addition, original ownership of digital assets is protected and assured by transparent smart loan contracts, which cannot be modified in any way once recorded on the blockchain ledger.
Kosta Kantchev is the co-founder of Credissimo, the business that runs Nexo. He has been active in the European FinTech industry for over 10 years and, according to his online biography, was an early user of the bitcoin cryptocurrency. He has also actively collaborated in a slew of blockchain projects that focus on enabling global loan repayments in cryptocurrencies.
The CTO of Nexo is Vasil Petrov. Petrov has cumulated more than 16 years of expertise in niche domains, including: system administration, back-end development, architecture design of high-load and full-cycle projects. Besides his involvement at Nexo, Vasil is also the co-founder of a US multichannel video and internet service that currently has more than 150,000 clients.
The Nexo Token
The NEXO token is a US-SEC compliant, dividend-paying, security-currency which is backed by the assets in Nexo’s loan portfolio. Nexo’s customers have access to instant cash from around the world. Launched into the crypto market just at the beginning of this month, the price of a single Nexo token has continued to be fairly stable. For more informations about Nexo dividends, you might want to check this blog post.
At the time of writing, the currency trades at $ 0.189254 USD, having a market cap of $105,982,242 USD. The circulating supply of NEXO tokens is 560,000,010 out of a total supply of 1,000,000,000 NEXO.
Where Can You Buy Nexo
The NEXO token can be bought on the following exchange platforms:
- IDEX– trading pair: NEXO/ETH;
- DDEX– trading pair: NEXO/ETH;
- Hotbit– trading pairs: NEXO/BTC NEXO/ETH;
- EtherDelta– trading pair NEXO/ETH;
- Stocks.exchange –trading pair: NEXO/BTC;
Nexo Wallets – What is the best Nexo Wallet
The NEXO coin is an ERC20 based token, so it can be stored in any Ethereum compatible wallet. But to use the Nexo platform and loan system, you have to download the Nexo Wallet and store your other cryptos in it.
Considering that Nexo is offering an instant lending platform which follows the compliance standards in the crypto world, it would not be surprising to see this service attracting a great number of users and investors.
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