Nexo - this is created on the basis of blockchain Ethereum a platform for granting instant loans secured by crypto-currency deposits of the borrower, thanks to this we do not have to sell crypto-currencies owned when we need capital.
Who created Nexo?
The Nexo platform was created in February 2018 as a separate project of a European corporation Credissimo - dealing with new technologies in the field of finance, and specifically the implementation of loans. The company has been operating since 2007, has been inspected by one of the four largest global financial audit companies - Deloitteand systematic supervision by European banks and financial regulators. Over 10 years of experience in the FinTech industry and approximately 130 employees. He has over 1000000 submitted loan applications, 80000 approved loans in 2017 alone. Prestigious awards and distinctions in 2017, e.g. 2 awards in the competition Forbes Business Awards - for "Innovations in the Financial Sector" and for "Quality of Services". All this created the basis for entering a new market of developing technologies blockchain.
What distinguishes the Nexo project?
First of all, it should be noted that the Nexo project stands out from other loan projects (e.g. ETHLend or Salt) in that it is focused on the regulated market from the very beginning. This is evidenced by the fact that from the start they act in harmony with the US Securities Commission at a glance SECwhat causes them tokens are treated as so-called Security Tokens, and all indications are that the cryptocurrency market in the future - in the majority will follow the path of a fully regulated financial market.
How does the Nexo loan system work?
The way to get a loan is easy and clear:
1. Registration on the Nexo platform
2. Transfer of your cryptocurrencies to your Nexo wallet to serve as loan collateral (currently available BTC, ETH, BNB, XRP, NEXO)
3. Then the platform will automatically calculate our available loan limit depending on the security deposit made:
Bitcoin - 50%, Ethereum - 50%, Ripple - 40%, BinanceCoin - 30%, Nexo -30%
(in short, when you want to borrow the equivalent in dollars - 100 ETH - you must submit 200 ETH on the platform)
4. Depending on your choice - you get an immediate loan with the choice of:
- transfer to a bank account in one of the 200 currently available jurisdictions, in one of 40 currently supports fiat currencies
- transfer to a cryptocurrency wallet that you have, e.g. on the stock exchange Binance in the form of USDT (Tether) or coming soon USDC (USD Coin) - a new "stable-coin" from GoldmanSachs, available eg on Coinbase, Poloniex or Kucoin
- in the future (until the end of 2018) as a transfer to the Nexo credit card
Loan repayment costs
The interest on the loan taken is 8% or 16% on an annual basis depending on the chosen form of security and repayment. They are calculated automatically every day, so if you want to pay off the loan right away - you will only pay as much interest as the contract was valid for. Taking into account the interest rate of 8% over the year - if we take a loan equivalent to $ 10000, the cost of our loan per month will be 0.66% or $ 66 (if the loan agreement is valid for the entire 365 days, because we can pay it back every month). moment). There are no other hidden costs. And all this in just 15 minutes! After paying off our obligations - we can automatically transfer our previously deposited cryptocurrency back to our portfolio.
Each user of the Nexo platform can feel safe that their funds will not die, as 24/7 monitoring is carried out to prevent fraud. Nexo protects funds by working with BitGo that is, the company in which he invested himself Goldman Sachs (one of the largest investment banks in the world), and which also chose such an industry as BitStamp, Creak, Upbit, CMEgroup or Pantera Capital.
It is similarly safe when it comes to verification matters and data protection. Nexo partners here OnFido - the same company trusted by Coinbase, Revolut, Bittrex or HSBC.
What are the NEXO tokens for?
NEXO tokens serve two purposes:
1a) When we deposit them as collateral for a loan - the cost of paying back the loan will be 8% instead of 16% per annum
1b) When we use them to repay the loan - similarly - the cost of repaying the loan will be 8% instead of 16% per annum
In practice, so NEXO tokens will always be used, in each loan taker / repayment transaction.
As NEXO is so-called Security Token - it is usually connected with the fact that we will receive a dividend. In the case of traditional shares - we usually receive the dividend at the end of the year. As in the case of tokens that we keep long-term - such as e.g. Pundi X - we can transfer the tokens to some hardware-secured wallet Ledger Nano - yes in the case of Nexo - in order to receive dividends, we have to keep them on the Nexo wallet. 30% of the company's profits per month will be distributed proportionally as to the number of tokens held. Curiosity: The first dividend payment will take place 15 December 2018 year (date of so-called Ex-Dividend the date you must have Nexo tokens on your wallet inside the platform - this is 5 December) and it will be the division of 30% of the company's profits from the beginning of the launch of the platform, ie from the end of April, the 2018 year. The dividend will be estimated in USD and paid at the most favorable for the shareholder at the moment - ETH, NEXO or USDT.
What else does the Nexo platform offer?
You can deposit one of the so-called stable-coins: Tether (USDT), TrueUSD (TUSD), Gemini Dollar (GUSD), USD Coin (USDC), Dai (DAI) and Paxos Standard Token (PAX) guaranteeing a 1: 1 conversion to the dollar and earning on this up to 6.5% annually.
Nexo has been campaigning for some time "NexoEverywhere" - it is - it, as the name suggests, to be anywhere where it could reach millions of potential customers. Some examples:
This is significantly reflected in the platform's popularity in relation to competing platforms - in global searches:
Plans for the future
By the end of 2018 - the company plans to introduce:
- "Invite a Friend" program
- lowering the minimum loan amount from the current $ 1000 to $ 100 - which will significantly increase the number of customers
- issuing a credit card for which borrowed funds can be obtained (confirmed receipt BIN from two banks)
- mobile application
- airdrop campaign
- adding 9 new cryptocurrencies as collateral for loans (the addition is confirmed soon Bitcoin Cash i Litecoin), while it is currently underway votefor participation in which - you will be able to win 10 × 100000 NEXO tokens - to add the remaining 7 cryptocurrencies from the pool: Cardano, Dash, Stellar,Tron, Eos, Zcash, Kin, Monero, Iota, Ethereum Classic, Neo, Vechain, Qtum, OmiseGo.
In addition, the company plans to finalize the transaction in the first quarter of 2019 ... buying a bank.
Summation why is it worth investing in NEXO
Let's face it - the whole world is based on loans. This market is now estimated to be worth $ 4 trillion. When you consider that on the market OTC only one of the companies - from March - she borrowed more than half a billion dollars based on cryptocurrencies - we can imagine the potential of Nexo in the future as a blockchain project, regulated, paying monthly dividends and being a "Security Token" as the first such company in the industry. When what is announced by the actions of big companies beyond the backstage, we can assume that the future belongs to "Security Tokens". Similar plans and visions of the future has a Nexo project whose long-term goal is to enter the traditional stock exchange in cooperation with their advisor Polymath (platform dealing with tokenization securities)
Loans on the platform will be taken, among others by: ordinary people, cryptocurrency investors, investment funds, cryptoclash exchanges, hedge funds, cryptocurrency mines. All this for investment purposes, consumption or under tax optimization.
If someone invests in the long term - it is worth considering diversification and in addition to standard projects - also have this type of project in your portfolio. Currently, due to restrictions and lack of regulation - NEXO tokens can be bought, for example, on the stock exchange HotBit (the largest volume of transactions from available exchanges) or at the currency exchange office Changelly (you can easily buy the majority of cryptocurrencies there) or directly on the Nexo platform (unfortunately at a higher price).