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

04th Feb 2019
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Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

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 entitle the holders to 30% of the company profits.

Nexo’s Passive income potential

  • The first dividend payout is scheduled for 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 is needed to stake the tokens.
  • Traditional companies distribute their dividends every financial year, Nexo is committed to making 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 a 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 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 diversifying risk.
  • Nexo is continually adding cryptocurrencies that can be used as collateral.
  • The LTV ratios of each coin depending on the price volatility and the liquidity of each coin. Nexo has 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 a clear fee structure and allow for instant payment of loans.  This will make Nexo a more convenient 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 its clients in over 200 jurisdictions and deals 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 automatically 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 against their crypto assets. In some jurisdictions, this has an important impact on how taxes are calculated to the advantage of the taxpayer. It seems that Mark Zuckerberg has used the same strategy to borrow against his Facebook stock.

Final Thoughts

Nexo is a fast-moving start-up. The founders are leveraging their experience from Credissimo to deliver a world-class product. Their road ahead can harbour some obstacles in terms of competition and regulation. However, Nexo has 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: 

Notice:

    • The answers have been provided by the interviewee.
    • This is not a buy, sell or hold recommendation of any assets mentioned in this interview.
    • Do your own research before you invest in anything.
    • This press release/article/interview has been published for free.

Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on NodesOfValue.com. He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.


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