What is Nexo Crypto?
Nexo is a blockchain-based ecosystem providing instant crypto loans, supporting more than 20 currencies, including the most prominent like Bitcoin and Ethereum. The platform promotes the seamless acquisition of crypto loans in fiat money without relying on credit score history. It allows users to deposit supported crypto tokens into its blockchain's wallets and then proceed to receive their cash-based loans.
Next crypto legitimacy
To its credit, Nexo is backed by Credissimo, a fintech team with millions of users and customers. The development team possesses decades of rich experience built on delivering instant customer loans, online payment services, and e-commerce financing. Credissimo seeks to revolve its functionality in digital assets through its modern technology.
While other projects get stuck battling the scrutiny of regulatory bodies and solid public caution, Nexo crypto is free of worries. The Credissimo team runs under bold supervision from multiple European financial and banking services authorities. It's undoubtedly a legit platform with over four million clients.
Goals in the crypto world
The base ambition driving the Nexo crypto project is to solve the most pressing problems identified by its developers in the financial industry.
Nexo wants to eliminate the idle state of digital assets, particularly with the proliferation of cryptos. As the mainstreaming of cryptocurrencies is ongoing, early adopters of this technology have accumulated enormous wealth. The developers are looking to touch base with investors, people in business, and non-professional users to let them tap into this wealth. Due to a lack of regulations and inadequate tech infrastructure, the accumulated idle wealth isn't beneficial. With Nexo, users hold crypto assets and secure access to cash in fiat currencies like USD.
Liquidating digital assets is tiresome and Nexo cuts down the process with readily available cash. While there are numerous crypto exchanges, each platform comes with unique requirements that vary drastically across these platforms. Furthermore, their withdrawal limits and slow procedures are unsuitable in a digital economy. Nexo seeks to eradicate these issues, giving more agility for seizing investment asset opportunities and accessing liquidity in less time.
Nexo frees users from the pressure of selling digital assets for fiat. Users profit from future prices tied to digital assets based on time. Crypto loans are an alternative to selling and allow users to keep capital gains while enacting wealth creation activity with their assets.
Fostering transparency and immutability on crypto loans, Nexo crypto loans are deployed on smart contracts in blockchain architecture. Users' funds are held in cold multi-signature wallets with verified custody standards through digital security companies; in this case, it's BitGo. In the preceding blockchain protocols' loan transactions, management was in the hands of peer-to-peer platforms relying on questionable legal agreements and often escalated to fraud.
With Nexo, transactions' legal status is asserted by blockchain technology and further backed by the Credissimo team.
The Operation Model
Loans are channeled into users' accounts on the same day or the following through bank transfers involving SEPA, ACH, or SWIFT. If you opt for the instant ones, you get paired with the free Nexo card. The recipient's accounts are flexible – they can either be personal or business.
Loan limits are calculated basing the value of a user’s crypto assets. Moreover, additional credit is available with an appreciation of the assets.
Nexo Oracle, the heart of this platform, manages its operation domains which include the following:
• Network governance.
• Monitoring assets in real-time.
• Analyzing data to manage loan distribution and repayment plans.
• Determining users' loan limits, borrowing costs, collateral, and repayment period.
To establish clients’ credit worth without needing to check bank accounts’ ratings, Nexo Oracle calculates the Loan to Value (LTV) ratio. For instance, a user with 1000 USD in Bitcoin (BTC) gets assessed by Oracle’s algorithm to receive a 50% LTV ratio; the user can only borrow up to 1000 USD as the minimum fiat loan.
Accessing and repaying Nexo crypto loans
To get a loan, follow these steps:
Transfer crypto assets into your Nexo account. After completion, the blockchain system initiates a series of validations for the specific asset. Based on the validity evaluation, Oracle determines your loan limit and prepares to issue it.
You then receive an instant loan in fiat currency through your preferred option – a bank account or Nexo card. Again, you are given the freedom to choose which fiat currency to receive your loan. If your asset appreciates, Oracle increases your limit instantly.
To repay your loan, you can choose between bank transfers and crypto. There would be additional discounts if you decided to repay using Nexo tokens. Alternatively, you can partially repay your loan by selling your account's crypto assets.
Cryptocurrency in a Nexo crypto account can be withdrawn either fully or partially as long as you meet the obligatory limit tied to your account balance.
Nexo crypto token availability
The native token for Nexo is NEXO, which is traded as a restricted security. Other perks include higher loan limits and a 30% profit share for holding NEXO. The total supply at the market cap is set to 1,000,000,000. It is available for trading on crypto exchanges like HitBTC.
As the crypto industry rises and sees mass adoption, crypto lending offers an opportunity for a trillion-dollar venture. If you want to unlock assets’ value without giving out ownership, Nexo is the best option.
Author: John Walter
A tech enthusiast empowered with a passion for learning new technologies; loves to write and help others understand the Tech/Web3 niches.