The world right now runs on information. The fourth industrial revolution is being driven by the Internet and the easy access to knowledge and information it provides. The biggest industry that is under immediate threat of modern technology throwing out legacy systems, is the Financial Services Industry.
The world’s Finance sector and industry is probably the most rigid industry there is. And for good reason, because of the high stakes. Another reason that the financial industry and sector have been so rigid is because of the lack thereof another viable option. But over the last decade, that has changed.
The blockchain is well-equipped and poised to take over the financial industry’s load and there are people all over the world pushing for this change. The blockchain is a highly disruptive technology because in order to promote large scale adoption of it, it is imperative for companies to throw out their old systems.
But with all of this talk of the blockchain taking over the financial industry and sector, there are still many problems and services that the cryptocurrency market does not provide to its community. That the market will have to start providing if it is in any idea of rebuilding the finance sector. One of these problems of the cryptocurrency industry is the lack thereof options to take loans.
This is something that the team at Nexo are about to change. Their solution for instant loans against cryptocurrency holdings is filling one of the cryptocurrency market and the blockchain industry’s biggest voids.
Nexo – World’s First Instant Crypto Backed Loans
Nexo is a cryptocurrency project that is powered by Credissimo. Credissimo is a leading FinTech company that is providing loans and lending services to people all across Europe for the past decade. Credissimo has a lot of strong partnerships and a team that has a lot of experience in the Financial Sector of Europe.
The idea and problem that Nexo is solving is essentially, the really low liquidity speeds and troubles that the cryptocurrency owner faces. The identity and build of most of the cryptocurrencies in the market right now are designed in such a way that make them very idle and unincluded in the investors day-to-day. Because of which both the investor and the market is affected. The investor because he/she cannot make instant buys and decisions based on the market fluctuations and the market because it is handicapping itself by not cashing in on such opportunities.
The Nexo platform is looking to solve the following problems with its product and interface:
- Idle Value of Assets The only way to make fiat money off your cryptocurrency investments, right now, is by selling. In order to change that Nexo is planning to simply unlock the potential that these investments have by providing loans based on the cryptocurrency assets that an individual holds.
- Slow Liquidation Process A problem that all cryptocurrencies acorss the market face is the liquidation speeds it has. They are very slow and the process is cumbersome because of the platforms and exchanges we use. The work around that Nexa has found for this problem is the allotment and issuing of fiat currencies (USD, GBP, JPY, etc) immediately by staking the cryptocurrency as collateral.
- Loss of Ownership When the holder of a cryptocurrency sells it because he/she is in dire need of money, they are opting out of the future price hikes that the coin is likely to see. They are forgoing the potential that the coin may have because of pressing requirement for fiat. This is solved by Nexa by holding the digital asset and giving money in exchange and returning the digital asset when the money is repaid.
- Transaction Fees The process of liquidating digital assets is taken out on a platform or an exchange. Most exchanges ask for exorbhitant amounts in transaction fees. Which essentially carves out of your holding. The Nexa platform and wallet have no transaction fee whatsoever, the only money the make is the small margin of interest that is imposed on all the loans.
- Lack of Trust The cryptocurrency market is a largely trustless environment. It has been the butt of a lot of hacks, scams and schemes and the average participant needs to be vary of this. In order to establish an enforced amount of trust in the system, the Nexa team has harnessed the potential of the smart contract system.
Nexo : The Product
The Nexo product has four layers. And the layers are;
The Nexo platform has a wallet that it requires all the users to use. After downloading the wallet application, the user transfers his/her funds into the wallet.
The Receiving of Loan
Based on the amount of money that the user has transfered to the Nexo wallet, a loan limit is specified to the user and the user gets to choose how much money the would like on loan. Based on the user’s requirement, the loan is then sanctioned and fiat currency is instantly credited to the user.
The Repaying of the Loan
The loan is precided over by a smart contract. The smart contract looks after the paying back, which is directly cut from your wallet by the company as return when the loan time is up.
The Withdrawal from Wallet
After having successfully used and returned the loan, whatever cryptocurrency assets the user may have on the wallet can be withdrawn and transferred back to a wallet of the user’s choice.
The Nexo Credit Card
All users on the platform can apply for a Nexo Credit Card that essentially has a set credit limit that is decided based on the crypto assets of the user. More and less limit is available as and when the asset appreciates or depreciates.
The repayment of the usage of the credit card can be done using multiple options. The money can either be directly debited out of the users wallet, the payment can be done using the Nexo Token and has no minimum payment that needs to be given.
According to the roadmap, all of their objectives for the third quarter of 2018 have been met.
Over the last quarter of this year and the first quarter of the next, the company aims to increase the maximum loan limit on the platform and conduct another round of Airdrops.
The company has been operating for the last ten years in the European Financial Sector and has been quite successful as well. The cryptocurrency market is a different kettle of fish for this company but is one that the company is well-equipped to handle.
The company is audited by Deloitte and has strategic partnerships with TechCrunch, Polymath. The company is also a member of the Crypto Valley foundation and Bitcoin Association Switzerland.
[bctt tweet=”Find the Reason – Why Nexo – The World’s best instant crypto backed loan provider” username=”ItsBlockchain”]
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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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