Cryptocurrencies are gradually becoming more relevant than before, and interest paying platforms such as Nexo is paving its way into the financial market. For this reason, it is no surprise at all. Nexo is offering more value to cryptocurrencies by providing a platform where people can lend with their cryptocurrencies as collateral. Yes, Nexo is offering crypto-backed loans. There is a whole lot to this beautiful offer. It’s only right that you have us to dig in and get you the right information.
We would be giving you a deep review. Our review would answer certain questions you may have about this platform and as expected, we would give our famous review verdict on the platform. After that, the rest is up to you.
What is Nexo?
Some say it’s a project, others say it’s a system but the important information to us is what the platform has to offer. Developed by a high FinTech company, Nexo is targeted at making cryptocurrencies more valuable than they were. Let’s make this clear. We may have heard of numerous occurrence with people running out of cash but have lots of cryptocurrencies. These cryptocurrencies have no value in financial institutions like banks.
Nexo is providing an avenue where people get to receive loans, just like in banks, using just their cryptocurrencies. At this point, Nexo should sound as exciting as can be. Also, you have to exercise a certain caution before subscribing to a financial platform.
Having enough knowledge on what the platform does, how about we go ahead answering some basic questions that would aid your decision.
Who Owns Nexo?
It was developed and is owned by a team of 14 Tech experts, who all work for a Tech company, Credissimo. Their names and biographies are available on their website. This certainly means that they have a certain confidence in the services they are offering. Their chief co-founder is identified as Kosta Kantchev who is also a co-founder of Credissimo.
How does Nexo Work?
Although based in Switzerland, Nexo is offering services to people in all countries of the world except China. The reason for the exception is not known.
They give fast and easy loans to people with just cryptocurrencies. The only downside to accepting the loan is that for the duration of the loan, crypto owners cannot profit or trade with the cryptos used as collateral. There is also an added advantage from Nexo for holders of the Nexo Token. Holders get dividends from just holding the token. The dividends comes from 30% of the profit gained from loans by the company.
Nexo tokens have a period of sale after which the tokens are distributed immediately. A token is said to go for 0.100USD. There is a Loan-To-Value (LTV) that comes with each cryptocurrency depending on the value fluctuations of said currency. These Loan-To-Value are determimed by thir Oracle. The Nexo Oracle is a technology that monitors every function of the Nexo platform. What this necessarily means is that, the Nexo platform is automated.
How can the Loans be Repaid?
This is an aspect that gives Nexo a certain added advantage over similar platforms. Loan payment is not restricted to a certain currency. Loans can be paid using cryptocurrency, Nexo token and fiat currency i.e cash. Nexo accepts cryptocurrencies like Bitcoin, Ethereum, XRP, Cardano, Monero, Binance Coin and up to 10 other cryptocurrencies. This is a big improvement for the platform, given that less than a year ago, they only supported two cryptocurrencies.
As much as Nexo does offer valid loans, loaners have to be sure that their dealings are duly secured and in no way illegal. This is of no worries because the Nexo token is bound by the Securities and Exchange Commission (SEC) Regulation D Rule 506(c). What this means is that the token may not be recognised by financial institutions but it is not an illegal currency.
With all these questions duly answered, how about we weigh our options when it comes to Nexo. Let’s see if the advantages of loaning from Nexo superceeds the disadvantages or vice versa.
- The platform is automated and not subjected to human error.
- The loaning process is easy to understand.
- Paying back loans is not rigid or restricted to only one currency.
- It offers fiat currency from cryptocurrencies. This means that it gives cryptocurrencies more value in the financial world.
- The operation is in no way illegal.
- The Nexo token offers dividends which is a way to earn cryptocurrencies.
- The exchange transaction is directly between the platform and the loaner. This means that there is no financial body governing the transactions hence, no extra charges or tax
- There is always a risk with every online transaction.
- Investors may be unable to repay the loan if anything goes wrong.
- You won’t profit off your cryptocurrencies for the duration of the loan.
- Borrow from 5.9% APR
- Fund the account with stable coins like: USDT, DAI, TUSD & EUR
- Earnings: 8 % APR on stable coins & EUR
- BTC / ETH / XRP is scheduled to be added in near future
- No Fees attached
- Token holders will receive additional 30 % dividends
- Upcoming credit card connected with wallet – #zerofees – up to 5% cashback on transactions
It is undeniable that Nexo have established a profitable business for both parties. What they have done is to tap into the potential of the crypto market while making it more valuable for investors. They have solved the problem people face with owning cryptocurrencies by building a connecting bridge. Doing this, and also providing dividend for token holders, earns our respect.
Now, to the big question you have been waiting for. Do we recommend Nexo? Is it a Yay or Nay? Honestly, there was no red flag from our review. We would highly recommend loaning with Nexo especially when in dire need. Also, holding their token would be an advisable financial decision. You get to kill two birds with a stone.
In conclusion, Nexo does seem to have massive potential given it’s history of increase in loans. They may just be on their way to being the largest loaning platform in the crypto world. Before then, it is safe to tap into the profits and advantages with their offers. In the end, the final decisions are up to you.
Highest interest paying platform: Celcius paying up to 10.79 % APR.