NEXO

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Discover NEXO's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is NEXO?

NEXO is a blockchain-based lending platform that allows users to get instant loans backed by cryptocurrencies. It offers various financial services, including crypto-backed loans, bank accounts, cold wallets, consumer loans, and debit cards. The platform is powered by the NEXO token, which is an Ethereum-based, SEC-compliant dividend-paying asset-backed security token with utility features.

How is NEXO used?

NEXO (NEXO) is the native token of the Nexo cryptocurrency exchange and lending platform. It serves several purposes within the ecosystem:

  1. Utility Token: NEXO was originally designed to incentivize loyalty to the platform. Users holding NEXO tokens in their accounts on the Nexo platform receive various incentives, such as higher yields on their digital assets, free crypto rewards on card purchases, and borrowing rate discounts on crypto-backed credit lines.

  2. Staking Mechanism: Nexo has switched to a staking mechanism, allowing users to earn interest on the NEXO token directly. This makes it an investment asset as well.

  3. Loyalty Program: Users can hold NEXO tokens to unlock certain perks according to the platform’s loyalty program. These benefits are tiered by the number of NEXO tokens held and include discounted borrowing rates, increased rewards for each asset swap, and the number of fee-free crypto withdrawals.

  1. Governance: The token has been used by the company to take votes on governance proposals to decide on how to direct platform efforts.

  2. Dividend Payments: NEXO token holders have received multiple dividend payouts, including one totaling over $20 million in 2021. After this dividend, the Nexo community voted to continue profit-sharing through daily interest for NEXO holders rather than as lump-sum dividends.

  3. Trading Fees: NEXO can be used to pay platform trading fees, which grants a discounted rate compared with paying by other means.

Overall, the NEXO token plays a central role in the Nexo ecosystem, providing users with various benefits and incentives while also serving as a governance and dividend-paying mechanism.

How do I store NEXO?

To store NEXO tokens, you can use a variety of wallets that support the Ethereum blockchain, as NEXO tokens are issued under the ERC-20 standards. Here are some options:

  1. Nexo Wallet: You can store NEXO tokens directly on the Nexo platform, which offers a built-in wallet. This wallet allows you to manage your NEXO tokens, receive interest, and participate in governance votes.

  2. Zengo Wallet: Zengo is a non-custodial wallet that supports NEXO tokens. It offers a user-friendly interface, allowing you to buy, view, trade, send, and receive NEXO tokens directly from your mobile phone. Zengo also provides real-time market tracking and historical charts.

  3. Ledger Hardware Wallet: Ledger offers a secure hardware wallet solution that supports NEXO tokens. You can store your NEXO tokens offline, ensuring they are resistant to malicious attacks. Ledger also provides a Ledger Live App that allows you to manage your assets, track transactions, and swap between different cryptocurrencies.

These wallets provide a secure and convenient way to store and manage your NEXO tokens.

How to buy NEXO?

To buy NEXO tokens, you can follow these steps:

  1. Using the Nexo App:

    • Deposit USD, EUR, or GBP via a secure bank transfer. EUR and GBP transfers are instant, while USD wires take up to 2 business days.
    • Go to the Exchange tab inside the Nexo app and swap your funds for NEXO tokens.
  2. Changelly:

    • Use various payment methods like credit/debit cards, Apple Pay, Google Pay, bank transfers, and more.
    • Select the crypto you want to purchase, the fiat currency, and your country of residence.
    • Verify your identity and confirm your payment.
  3. Binance:

  • Create a free account on the Binance website or app.
  • Deposit fiat currency from your bank account to Binance.
  • Use the amount to buy NEXO tokens. You can also buy a stablecoin like USDT first and then use it to buy NEXO.
  1. Pionex:
    • Register a Pionex account and pass KYC verification.
    • Choose your preferred method to buy NEXO, including credit card, debit card, bank wire, and ACH transfer.

These methods offer various payment options and different fees, so you can choose the one that best suits your needs.

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History of NEXO

NEXO, a cryptocurrency token, was introduced by Nexo, a regulated digital assets institution, in 2018. Nexo was founded by Antoni Trenchev and Kosta Kantchev in 2017. The company, based in Zug, Switzerland, has raised over $52.5 million in funding and provides various services including buying, exchanging, and storing cryptocurrencies, as well as advanced trading solutions for both retail and institutional clients.

The NEXO token is an Ethereum-based token that conforms to the ERC-20 standard. It was designed to be an SEC-compliant dividend-paying asset-backed security token with utility features. Initially, 30% of Nexo's profits were shared with NEXO token holders through dividend payouts. However, after a dividend payout of over $20 million in 2021, the Nexo community voted to continue profit-sharing through daily interest for NEXO holders rather than lump-sum dividends.

NEXO token holders have received multiple dividend payouts, including one totaling over $6.1 million in August 2020. The token also offers additional utility features such as discounted interest rates on crypto-backed loans and is accepted as collateral on the Nexo Platform.

In addition to its dividend payouts, NEXO is used to unlock certain perks according to the platform’s loyalty program. Users can hold the token in their account to enjoy benefits such as discounted borrowing rates, increased rewards for each asset swap, and the number of fee-free crypto withdrawals. The token can also be used to pay platform trading fees, which grants a discounted rate compared with paying by other means.

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How NEXO works

NEXO is a centralized finance (CeFi) platform that offers a range of services, including buying and selling cryptocurrencies, earning interest, borrowing money, and using a crypto-backed credit card. Here's a detailed overview of how NEXO works:

Earning Interest

NEXO allows users to earn interest on their cryptocurrency holdings by depositing them into a NEXO wallet. The interest rates vary depending on the type of currency and the terms chosen. Users can earn up to 16% interest on their crypto assets, which is paid out daily. This interest is generated by NEXO lending out the deposited assets to other users who need loans.

Borrowing Money

NEXO offers crypto-backed loans, where users can borrow fiat currency or stablecoins using their cryptocurrency as collateral. The interest rates for these loans range from 0% to 13.9%. Users can borrow against over 60 different cryptocurrencies, and the loan proceeds are paid in stablecoins or cash.

Nexo Card

The Nexo Card is a Mastercard that allows users to access the value in their cryptocurrency without selling it. The card is linked to the user's Credit Line, and purchases are automatically deducted from the available credit. The card offers up to 2% cash back in NEXO tokens and has no annual fees or foreign transaction fees. There are no additional fees for transactions up to $20,000 per month.

Staking

NEXO offers staking services for Ethereum (ETH) holders. Users can convert their ETH to NETH, a liquid staking token, and earn a staking yield. This token can be used as collateral for loans or traded on the NEXO exchange.

Trading

NEXO provides a trading platform with over 500 trading pairs. Users can trade cryptocurrencies, stablecoins, and fiat currencies. The platform also offers advanced trading features like leverage trading and a "Pro" trading interface for experienced users.

Loyalty Program

NEXO has a loyalty program that rewards users based on the percentage of their portfolio comprised of NEXO tokens. Users can save on borrowing fees and earn rewards by qualifying for higher loyalty levels.

Security and Regulation

NEXO is a centralized platform, which allows it to conform to regulations and register with necessary governing bodies. It is registered as a money service business and has licenses to operate in over 200 countries. The platform prioritizes security, with top-notch measures in place to protect user funds.

Overall, NEXO provides a comprehensive suite of services that cater to various needs in the cryptocurrency space, from earning interest to borrowing and trading.

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NEXO's strengths

NEXO (NEXO) has several strengths that make it a unique and attractive platform for users:

  1. All-in-One Platform: NEXO offers a comprehensive suite of services, including staking, earning, borrowing, wallet management, and trading, making it a one-stop-shop for users.

  2. Competitive Interest Rates: NEXO provides competitive interest rates on crypto holdings, with yields up to 16%.

  3. Leveraged Trading: The NEXO Booster allows users to leverage their crypto holdings up to 3x, enabling them to grow their portfolios without additional capital.

  1. No-Fee Trading: NEXO offers no-fee trading for standard swaps, making it an attractive option for frequent traders.

  2. Wide Asset Support: NEXO supports over 500 trading pairs and allows users to purchase over 38 digital assets directly using debit/credit cards or bank transfers.

  3. Strong Founding Team: NEXO's core team includes experienced professionals from various fields, including finance, e-commerce, and IT, ensuring a robust foundation for the platform.

  1. Strong Partnerships: NEXO has strategic partnerships with prominent companies like Bakkt, BitGo, Ledger, and Circle, enhancing its credibility and capabilities.

  2. Loyalty Program: The NEXO Loyalty program offers benefits like lower fees and higher interest rates based on the percentage of NEXO tokens held in a user's portfolio, incentivizing long-term engagement.

These strengths contribute to NEXO's reputation as a versatile and user-friendly platform for crypto enthusiasts.

NEXO's risks

NEXO (NEXO) carries several risks that investors should be aware of. These include:

  • Risk of Default: This risk is inherently on the user's side. If the market price of the user's assets decreases, Nexo's Oracle will inform the user of the changing Loan-to-Value (LTV) ratio. If the user fails to intervene, Nexo can liquefy part or all of the assets to cover the loan's value and interest.

  • Currency Risk: Fluctuations in the value of cryptocurrencies can impact the user's assets and the LTV ratio.

  • Interest Rate Risk: Changes in interest rates can affect the LTV ratio, leading to higher default risk.

  • Avalanche Effect: A large decrease in crypto prices could trigger an avalanche effect in smart contracts, further depressing market prices.

  • Technical Issues and Cyberattacks: As with any online platform, NEXO is vulnerable to technical issues and cyberattacks, which can compromise user assets.

  • Lack of FDIC Insurance: Unlike traditional banks, NEXO is not insured by the Federal Deposit Insurance Corporation (FDIC), which means users are not protected in case of default.

  • High Risk Investment: NEXO has been given a high risk score by InvestorsObserver due to its potential for price manipulation based on recent changes in volume and market cap.

  • Security Threats: Users must be cautious of common security threats such as email and account takeover, phishing, malware, and identity theft to keep their NEXO accounts safe.

  • Lack of Transparency: Some users have expressed concerns about the lack of transparency in NEXO's operations, particularly regarding the backing of assets and the risks associated with their institutional lending desk.

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Did NEXO raise funds?

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NEXO’s team

Here is the team behind the crypto NEXO (NEXO):

  • Kosta Kantchev: Founder and Board of Director.
  • Antoni Trenchev: Co-founder and Managing Partner.
  • Georgi Shulev: Co-founder, involved in a legal dispute with Nexo over missing assets.
  • Kalin Metodiev: Co-founder and Managing Partner, also part of Nexo Ventures.
  • Tatiana Metodieva: Head of Corporate Finance and Investments at Nexo Ventures.
  • Stefan: Member of the Investment Team at Nexo Ventures.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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