Nexo appears to be a truly innovative blockchain service that the crypto ecosystem has seen in a long time. Nexo is the world’s first crypto-backed loan which aims at providing instant cash to users without requiring them to sell their cryptocurrency.
It aims to provide instant loans to anybody through the collateralization of digital assets. Through the platform, users can directly receive fiat money to spend either in their Nexo Credit Card or their own bank accounts.
How does Nexo work?
Nexo is powered by Credissimo which is a publicly listed European FinTech company specialising in instant loans, bill payment services, and e-commerce financing. It has combined the efficiency of Credissimo with the blockchain technology to present innovative and efficient financing solutions for the new digital economy.
The Business Model of the crypto is essentially a 4-step process:
Step 1: A user transfers their crypto assets to their Nexo wallet. After the relevant blockchain information has been confirmed, the loan limits and payments are set-up instantly.
Step 2: The loan limit is made available instantly through bank transfer or the free-of-cost Nexo credit card. The user has the choice to pick the currency in which they want to receive the funds. The loan limit is determined by the market value of the user’s crypto assets.
Step 3: The user repays their loan to the platform either through bank transfer, crypto currency, or fiat currency. Any user who chooses to make payments with the NEXO token receives a special discount on interest rates.
Step 4: Once the loan has been repaid completely, clients can withdraw all their crypto assets from the Nexo Wallet.
The Nexo Credit Card
One interesting feature of Nexo is their Credit Card which offers access to a flexible loan where the loan limit is determined by the market value of your crypto assets. As soon as your crypto’s value goes up, you receive instant additional credit on the card.
Features of the Nexo Credit Card
- Free-of-cost with flexible loan limits.
- No monthly or annual fees.
- Multiple repayment options.
- No hidden fees.
- Secured by digital assets such as cryptocurrencies, utility tokens, NEXO tokens, etc.
- 24/7 live assistance and fraud monitoring
What solutions does Nexo offer?
- Value of Digital Assets: Investors who own digital assets and cryptos worth billions can obtain an instant access to fiat currency by collateralising their digital assets in the Wallet.
- Instant Cash Access: Asset liquidation is a slow process and in times of emergency, the wallet enables you to access cash conveniently around the globe.
- Retaining Ownership: clients keep all the ownership of their digital assets and can access them again as soon as the loan has been repaid completely.
- Cost and Tax Efficiency: the wallet does not incur any tax liabilities or exchange and/or any hidden fee.
- Zero Credit Checks: the crypto-backed loan is instant and does not call for running unnecessarily long credit checks.
- Transparent Blockchain Contracts: The blockchain governing the ownership of digital assets is transparent and secure.
The worth of a blockchain is, to quite some extent, determined by its applications. The concept introduced by Nexo can help
- Cryptocurrency Investors: who can receive instant funding on the market value of their crypto.
- Cryptocurrency Miners: catering to their need of computing power.
- Hedge Funds: can make the most of new investment opportunities by leveraging their portfolio.
- Cryptocurrency Exchanges: can raise funds to finance their margin lending and trading services.
- ICOs and Crypto Companies: can set-up an instant crypto-backed loan to meet their working capital and operating expenses.
Nexo is backed by a company of 10-year reputed history with operations in multiple countries across the globe and is still growing with considerable profit. Using cryptocurrency as a collateral for lending has significant potential since it allows users easy liquidity of assets while retaining their ownership.
However, the NEXO tokens have been classified as security tokens because of which no current high-volume exchanges are able to list it. So, no prediction about their trading volume can be made.
Yet, the project appears to be a good one with substantial potential. It offers easy, quick, and secure solutions to a lot of financing problems of the crypto world and its long-term prospects are looking good.
Visit – https://nexo.io
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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