Nexo

What is NEXO?

Nexo is the native token of the decentralized crypto lending platform of the same name. Nexo is the first cryptocurrency-based loan provider in the blockchain space, bridging the gap between traditional and decentralized finance.

Nexo is a private company that manages cryptocurrency-backed loans using collateral tokens. The platform runs on Ethereum blockchain and Nexo token use ERC-20 standard. It uses oracles and smart contracts to manage loans and automate the process. You can take a look at Nexo’s current price data above.

Who developed Nexo?

Nexo was co-founder Antoni Trenchev, Georgy Shulev, Kosta KanchevAnd Kalin Metodiev. Trenchev is an entrepreneur and managing partner of Nexo. He served in the National Assembly of Bulgaria. Shulev has extensive experience in traditional banking, having worked at the European Investment Bank.

Kanchev is the executive chairman of Nexo. He also co-founded the European fintech group Credissimo. Metodiev is a corporate finance expert with more than twenty years of experience in the market.

The vision of the project is to create a FinTech ecosystem that brings some of the core elements of traditional finance to the pace of DeFi. The company aims to be a pioneer in digital financial technology by providing the most advanced and sustainable solutions. The platform was officially launched in 2018. During the first few years, the token generally exhibited low volatility, with Nexo’s price teetering below $0.20.

The market value began to fluctuate more around the first half of 2020. A significant peak was reached in May 2021, when the price almost reached $4.

Over the years, Nexo has established a number of major partnerships and affiliates, including Ledger, BCB Group and Circle. In addition, the company is a member of such global organizations as The Bitcoin Foundation, the European FinTech Association and the International Token Standardization Association.

What are the main features and functions of Nexo?

The maximum supply of Nexo tokens is limited to 1 billion. This makes the asset deflationary, meaning that the price of Nexo is expected to rise as the token becomes more scarce.

The main service offered by the platform is instant lending secured by cryptocurrency. The NEXO token is used as collateral to obtain loans in fiat currency and stablecoins.. If a user decides to take out a loan using NEXO coin, they can get special discounts on interest rates.

Loans are provided using smart contracts and oracles to ensure financial integrity and security. Users must comply Know your customer (KYC) practice of using lending services. Nexo comes with its own hot wallet that can be used to store assets as collateral. From here the funds are distributed based on the agreement.

Users are incentivized to hold NEXO tokens by becoming part of the loyalty program. In addition to the above mentioned percentage discounts, ttoken holders are also entitled to receive dividends as rewards for staking. Dividends represent 30% of the company’s profits and are paid using NEXO, ETH, BTC and USDC.

While Nexo’s core mission is to provide cryptocurrency-backed lending services, it offers other DeFi services, including cryptocurrency exchanges and direct cryptocurrency purchases. Loyalty program participants can withdraw their crypto assets for free. Token holders using the exchange service can also receive instant cashback.

Among its services Nexo is the first company to offer a credit card backed by cryptocurrency.. The Nexo card allows users to spend fiat money to provide crypto assets as collateral for repayment. It can be used like any other traditional credit card. Cardholders receive cryptocurrency rewards for their transactions.

The Nexo Credit Card is used to combine traditional and digital finance by providing holders with both a physical and virtual card. The application can be used to freeze or unfreeze an account. The price of Nexo is not affected by card usage.

The credit card does not require you to make minimum monthly payments or other fees. There are also no applicable fees for international transactions up to €20,000 per month. According to the company, users are eligible for 10 free monthly payments.

To ensure the safety of users’ assets, Nexo stores all assets in cold wallets. The platform strictly follows KYC requirements for both its digital financial services and crypto credit cards. Safety regulations in place to meet customer needs, as well as Nexo’s low price, could create a positive trajectory for the asset’s long-term future.