Passive income strategies for financial freedom

Nexo: A crypto lending platform. Sharing it’s profit with Nexo token holders.

04th Feb 2019
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Nexo is a cryptocurrency lending platform. Cryptocurrency holders can lend out their tokens and coins to the Nexo Platform. The interest rates charged are between 8% and 16%. The Nexo tokens entitles the holders to 30% of the company profits.

Nexo’s Passive income potential

  • The first dividend payout is scheduled for the December 15, 2018.
  • Nexo holders need to stake their tokens 10 days before the ex-dividend date to receive a pro rata rate of 30% of the company profit.
  • KYC AML are needed to stake the tokens.
  • Traditional companies distribute their dividends every financial year, Nexo is committed to make dividend distribution more frequently.
  • Dividends will be paid in ETH, NEXO or USDT. This decision is up to NEXO.
  • Nexo is a “Picks and shovel” strategy. They provide the tools to make profit in the cryptoverse but are not really part of it.

Team highlights.

  • Kosta Kantchev co-founder of Nexo is also co-founder of Credissimo.
  • Antoni Trenchev co-founder of Nexo previously a Member of Parliament at the National Assembly of the Republic of Bulgaria.
  • Michael Arrington an Advisor to Nexo was the founder of TechCrunch as well as Arrington Capital.
  • Trevor Koverko an Advisor to Nexo is the founder of Polymath

Link with Credissimo

Nexo is powered by Credissimo. Credissimo has been in business for for over 10 years and has millions of customers. During this time it has. Credissiom has recently received the following awards:

  • Top 10 Alternative Finance in European FinTech Awards 2017
  • Forbes Business Award “Financial Sector Innovations”
  • Forbes Business Award  “Quality of Services”

Nexo’s roadmap and business model

  • Nexo has a target of acquiring of an FDIC insured us bank. This would give it a foothold in the US market.
  • In the future, Nexo will securitize its loan portfolio. This will enable to free up capital tied in loans, capital which can be used for expansion. In addition to diversify risk.
  • Nexo is continually adding cryptocurrencies that can be used as a collateral.
  • The LTV ratios of each coin depend on the price volatility and the liquidity of each coin. Nexo have systems which determine the best systems.
  • Nexo is complaint with the Securities and Exchange Commission Regulation D Rule 506(c), they have stated that they are a dividend paying security token. This can avoid legal complications in the future.
  • Nexo are in the process of issuing a Credit Card. It will have clear fee structure and allow for instant payment of loans.  This will make Nexo a more convient choice for those seeking to borrow money against their crypto assets.
  • The marketing plan of Nexo is simple. They want to have Nexo Everywhere. They have secured a deal with Etherscan and CoinMarketCap to have a button next to each currency pointing to the NEXO loan platform.
  • Nexo serves their clients in over 200 jurisdictins and deal with more than 40+ fiat currencies.
  • The current minimum loan amount is $1,000 but it in the future it will be reduced to $100.
  • The interest rates on Nexo are between 8% and 16%. Interest is charged on a per use basis, and is deducted autoamitcally from the capital. The maturity is up to one year. The loan can be repaid at any time. These terms are reasonable and should attract an interesting team of borrowers.
  • Nexo allows crypto holders to borrow agains their crypto assets. In some jursidctions this has an important impact on how taxes are caclauted to the advantage of the tax payer. It seems that Mark Zuckberg has used the same strategy to borrow agains his Facebook stock.

Final Thoughts

Nexo is a fast moving start-up. They founders are leveraging their experience from Credissimo to deliver a word class product. There road ahead can harbour some obstacles in terms of competition and regulation. However Nexo have proved to be innovative by delivering more market oriented functionality and have shown to have significant foresight. Go Nexo!

Links;

Read their white paper for more details.

See also: 

Not investment advice. Not financial advice. Consult your financial advisor. Not a recommendation to buy, sell or hold. The staff of this site may own this digital asset/s mentioned on this page. Investing is risky and you may lose all your capital. See full disclaimer.

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