NEXO Review Jan 2020


$60mil Market Cap

Volume: Hotbit, Huobi Global, Bitrue
Liquidity: Huobi Global, HitBTC, Bitrue
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In Decentralized Finance (DeFi) there are few projects with the reach of NEXO.  With an ICO in March 2018, this STO launched in Switzerland with the help of Michael Arrington – Founder of TechCrunch and Trevor Koverko – CEO of Polymath.  The founding team has been working toward the product for much longer.  Nexo was founded by the Credissimo team who have been in business for over 10+ years and awarded as one of the top 100 Financial Tech companies in Europe.

Nexo was built to be the most advanced platform for instant crypto loans, and the only blockchain company to provide its services in 45+ fiat currencies and in more than 200+ jurisdictions.  Nexo’s instant lending platform combines seamless user-experience with military-grade security and with 256-bit encryption. Clients funds are held in individually assigned multi-signature wallets in cold storage, held with the only qualified audited and Goldman Sachs-backed custodian BitGo.
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Loans are a big business. Student loans, for example, account for $1.48 trillion in debt. Mortgages (loans collateralized by real estate) sum up to $14.9 trillion, a large fraction of the US GDP of $19.4 trillion. And Experian reports the average new vehicle loan in the U.S. is $31,099 in 2018.

Then there are payday loans, a $9 billion business with a national average annual percentage rate of nearly 400 percent. Another 2.5 million people every year take out auto title loans, collateralized by the title of their vehicles, according to Pew Research.

Nexo supports more than 20 cryptocurrencies as collateral for their loans including BTC, ETH, XRP, LTC, XLM, BCH, BNB and several stable coins.  The big saving come when their native token NEXO is used for the loans.

In the case that you use Nexo tokens to repay the loan you will be entitled to a 50% interest rate discount.  Holding Nexo tokens also widens the loan limit. Additionally, you are also entitled to a 30% Nexo profit-share payment as well.
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Lending is not free. Anyone looking to use their crypto as collateral for a loan should be cautious and do their homework.  Nexo has lowered their fee’s and is now charging about 5.9% (instead of the 8%+ previously).

The Nexo Oracle determines the exact terms, but its posted web terms do mention it’s calculated daily. The terms also contain language that the lender may consider you in default at its own discretion, and more.
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Nexo has made a name for themselves by executing on promises and continues to grow through development and economic partnerships.

Nexo launched a MasterCard-branded Crypto Credit Card.  Nexo claims the Nexo Card to be the first card in the world that enables users to spend the value of their cryptocurrency without in fact spending it. In addition, the card does not consider annual and monthly and foreign exchange fees. Describing the operational concept of the card, Nexo said:

“When using the Nexo Card to purchase goods and services, you actually pay using your Nexo flexible open-ended revolving credit line that is backed with your crypto holdings and thus not selling any of them, which is giving you the freedom to spend today and sell your holdings whenever you want in the future to pay back the loan.”
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Terra partners with Nexo to grow the crypto lending and savings markets across Asia.  The two companies are set to offer cutting-edge decentralized financial products and expand the crypto lending and savings market across the fast-growing Asia markets.
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TrueUSD selects Nexo as its official lending partner.  TrueUSD is now available both as a collateral and repayment option for Nexo’s instant crypto loans, making Nexo the official TrueUSD lending partner.

Nexo clients can deposit TrueUSD and borrow against it with a 95% Loan-to-Value (LTV) ratio which provides an additional utility feature for the stablecoin. TrueUSD can further be used to fund existing loans, with no price risk for the customer.
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Blockport partners with Nexo to so users will be able to use the Nexo platform to get crypto loans, offering them another alternative to selling their cryptocurrencies for fiat currencies.
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Nexo partners with Securitize to launch credit lines backed by digital securities.  The partnership will utilize the Securitize’s Digital Securities (DS) Protocol. 

the new service will allow asset owners to retain asset ownership, since users would borrow against their assets, as opposed to sell them.

Digital securities— which are also referred to as security tokens— are touted to bring significant benefits to traditionally illiquid asset classes.
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Nexo joins Binance DEX. 

“Binance is enormously important to the blockchain space and we are beyond excited help expanding the ecosystem, to the benefit of both BNB and NEXO Token holders, so that they can trade and borrow and soon earn in their respective cryptocurrencies as well.”

The NEXO Token Holders can now enjoy all the benefits which have turned Binance into the industry’s favorite cryptocurrency exchange – liquidity, cutting-edge trading solutions, dedicated focus on security and decentralization.
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Nexo has a small but effective team and a growing user base for the many product they now offer.  The use of these product is not for everyone, but collateralized crypto lending is a blossoming sector of DeFi in 2020.  Nexo’s geographical reach, regulatory compliance and dedication to the platform and token supporting the growth is impressive and leaves Nexo as one of the leaders in the space.

The safety of clients funds is the main priority for Nexo. Cold storage Wallets are provided by BitGo, the leader in digital asset financial services. BitGo Custody carries $100,000,000.00 in insurance protections through a syndicate of underwriters through the Lloyd’s, the world’s specialist insurance and reinsurance market. And this premium service comes in at no additional cost (details can be found here and here).

The $100 million policy covers digital assets where the private keys are held 100% by BitGo in the event of:
-Third-party hacks, copying, or theft of private keys
-Insider theft or dishonest acts by BitGo employees or executives
-Loss of keys

Nexo has chosen BitGo as its custodian because BitGo provides 100% cold storage technology in bank-grade Class III vaults and the BitGo platform is SOC 2 Type 2 certified. Advanced authentication mechanisms are employed to ensure the authenticity of data, and assets are distributed geographically and organisationally.
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