What Is NEXO
NEXO can be defined as this blockchain-based lending platform that offers instant loans that are fully backed by cryptocurrencies. All a user has to do is deposit an accepted token as collateral and they receive the loan in the form of a FIAT currency or a stablecoin. NEXO has its own native token as well known as the NEXO token and when it is locked in the platform, it gives users a specific set of benefits such as discounts on interest accumulated on the loans as well as the opportunity to get payments on funds that are deposited. They can even get dividends from Nexo's profits.
NEXO is appealing due to its automated and guaranteed instant approval with no credit checks, no minimum loan repayments, same or next day free local bank withdrawals, and high level of availability with over 40 FIAT currencies that are supported. There is also no origination and no liquidation fees and no FX commissions.
NEXO Founders
The NEXO project was originally announced in December of 2017 however it launched in April of 2018.
It was originally founded by a group of people that were professionals in finance and had an enthusiastic attitude towards cryptocurrencies. They turned to the blockchain with the intention of creating a cryptocurrency equivalent to a service that is well established in traditional finance. In 2018, this team launched the NEXO platform.
Antoni Trenchev contributed with experience in Finance Law and KYC and AML solutions.
How Does NEXO Work
NEXO was developed with the intention of preventing digital assets from sitting idle, especially while cryptocurrencies are booming in popularity. The liquidation of assets can also be a complicated process, one which NEXO cuts down through its quickly available cash access, and it also solves the retention of overwhip over digital assets, which gives their owners more flexibility when dealing with their value appreciation and depreciation.
Credit checks are eliminated with NEXO and as such, the potential credit rating devaluation issues are non-existent here. The blockchain-based architecture allows for a high level of transparency as well as the immutability of all of the loan-related arrangements.
The loans with NEXO are received on the same day through bank transfers that involve SWIFT, SEPA or ACH. The receiving account can be a personal account or a business account.
There is also a free NEXO card, where with it, the loan limit is calculated based on the value of the cryptocurrency assets which are held in a customer's NEXO account. Additional credit is available immediately after the appreciation of the specific assets.
The NEXO Oracle is in charge of its operation, such as the network governance, the performing of asset monitoring in real-time, and the handling of data analytics with the intention of managing the distribution of loans as well as payment plans.
NEXO oracle uses a loan-to-value (LTV) ratio in order to establish a client's credit without needing to check their bank account or credit rating data.
The client needs to transfer their cryptocurrency assets into a NEXO account, after which, the system will launch blockchain-based validations for the specified asset. Based on the received validations, the Nexo Oracle starts calculating the loan limit amounts and prepares for its provision. The client then will receive an instant loan in a FIAT currency through a bank transfer or through the NEXO card. They can also pick the suitable currency that they want to. Now, given the fact that cryptocurrencies are volatile, if they appreciate in value, the oracle can increase the loan limit immediately.
clients can repay the loans through bank transfers, or payments with cryptocurrencies. Those that use the NEXO tokens get discounts on the NEXO price.
In other words, the NEXO oracle automatically resolves the cash disbursing process, asset maintenance, notifications, and the management of the loans and NEXO price.
It collects the data from multiple exchanges and performs accurate, real-time asset valuation, and automatically records the payments and accounts for all of the transactions which are made by the clients. It also maintains interest repayments, outstanding balances, and loan limits. This impacts NEXO price.
Furthermore, NEXO has big data analysis, self-regulating algorithms, and prediction modeling in the Nexo Oracle with the intention of securing the proper functionality of the system and having all of the information which is obtained from external data sources be used for appropriate decision-making.
All of this influences the NEXO price, the NEXO token holders can also use the NEXO token to get discounts. They can receive interest payments and FIAT currencies. Holding NEXO tokens also has benefits. Keep in mind that this is not legal advice.
NEXO is a way through which you can get instant cryptocurrency-backed loans, however, this is just for informational purposes, and the information contained here is educational only. There is also Hyundai NEXO, a NEXO Wallet, and a loyalty program. This system marks the future of loans, where cryptocurrencies make up a huge chunk of it.
Where Can You Buy NEXO
NEXO has an available supply of 560,000,010 and a total supply of 1,000,000,000 coins alongside with $922.9M market cap and a $9.6M 24h trading volume.
If you want to buy, sell or trade NEXO, you can do so on the following cryptocurrency exchanges: BitMart, Bitfinex, HuobiGlobal, Uniswap V3 and Hotbit.
Disclaimer
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