Nexo (NEXO) - from traditional loans to cryptocurrencies

The European corporation Credissimo has been granting loans for 10 years, employing 130 people and servicing approx. 100 thousand. loans annually. This is data from the traditional part of the business. After launching cryptocurrency loans, the platform that provides them is already worth over $ 1,6 billion.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today is the time for Nexo - a project that was created thanks to experience in traditional business, but a real hit when it was combined with blockchain technology.

How Nexo was born

Before the Nexo platform and the cryptocurrency of the same name were created, traditional loans were granted by Credissimo since 2007. In recent years, it has been doing better and better, employing 130 permanent employees and many times more on the basis of franchises and subcontractors (data from the financial audit of Deloitte). In 2017, it exceeded 80 thousand. approved loans, even winning awards in the Forbes Business Awards in the categories "Innovation in the Financial Sector" and "Service Quality". And she decided to invest in blockchain technology.

As you can easily guess, it was the proverbial bull's eye. In February 2018, the Nexo platform, which is based on blockchain, was launched Ethereum. You can make instant loans, secured by cryptocurrencies.

How Nexo works

Nexo is neither the first nor the only loan project in the world of cryptocurrencies. So what made it not only stay on the market, but is one of the biggest players in it? First of all, it does not cut itself off from traditional finance, cooperating with the SEC (US Securities Commission). Thanks to this, Nexo tokens are classified as the so-called Security Tokens, i.e. safe coins.

This is also because all loans are secured with a large leverage. The loan amount depends not only on the size of the collateral, but also on the cryptocurrency in which the deposit is. In short: the more popular and recognized the cryptocurrency, the smaller the deposit may be, but even in the case of Bitcoin it must be up to 200% of the loan. Thanks to this, however, we do not have to sell cryptocurrencies if we need capital. And no matter what, because we can get a transfer in cryptocurrency or almost any fiat currency. 

Interest is calculated daily and automatically. So it pays off to pay off the loan faster, because then we will avoid costs. The monthly cost of the loan is currently around 0,6%. Importantly: there are no additional costs, known from traditional banks: commission, insurance, etc. Interest is the only cost of borrowed money.

The Nexo platform also puts a lot of effort into securing funds, cooperating, among others, with BitGo, a company owned by Goldman Sachs. It is a security leader that is used by virtually all of the largest companies in the industry:  Kraken, BitStamp, Upbit and CMEgroup. Data protection is handled by OnFido, which in turn is a company that cooperates with, inter alia, with big guys like Revolut, Coinbase, HSBC and Bittrex.

Advantages of Nexo tokens

The Nexo platform supports tokens with the same name. If we secure a loan with them, its cost drops by half. The same is true if we pay off a loan in Nexo. Just having them also pays off. If we keep them in Nexo's wallet, we'll get a dividend. 30% of the company's monthly profits are allocated to it, which are divided proportionally among all owners.

Quotation of the Nexo cryptocurrency

Nexo tokens can currently be traded at 40 Cryptocurrency exchanges. As of April 12, 2021, they cost $ 2,95. 560 million of the planned 1 billion units are traded, which translates into a capitalization of over USD 1,6 billion. This is the peak in the history of this cryptocurrency, which has increased by 12% in the last 2583,19 months.