What is Nexo Platform?
Nexo is a lending platform based on blockchain, offering folks immediate crypto-supported loans. Accepted tokens such as XRP, Litecoin, Ethereum, or Bitcoin can be put down as collateral to obtain loans in the form of stablecoins as well as fiat currency.
It is the indigenous token of Nexo platform, that when locked in the platform, allows benefits like discounts on accumulated interest and the chance to get interest on deposited funds. The holders get dividends from the platform’s profits.
Who Are The Brains Behind Nexo?
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A bunch of crypto enthusiasts and finance professionals discovered, who boarded the blockchain boat to develop cryptocurrency equivalent to a facility well-grounded in conventional finance, but up until now, non-existence in virtual finance — borrowing in exchange of value of the assets while keeping ownership.
The team behind the platform has a collective experience of more than 30 years in monetary services, involving hedge funds, acquisitions and mergers, investment banking, and non-crypto lending, with Antoni Trenchev, managing partner and Co-founder, further making a contribution in KYC and AML solutions as well as in Finance Law.
Why Is Nexo Unique From Others?
It is the initial facilitator of immediate crypto cryptocurrency-supported loans, intending to resolve lending market’s inefficiency. Its automated lending mechanism utilizes an oracle and smart contracts in the blockchain of Ethereum to handle loans.
After folks transfer crypto assets to a wallet controlled by platform, the oracle creates a loan, and the user is immediately provided with the funds.
Upon returning the loan, oracle reimburses crypto assets, and the transaction is recorded on blockchain. Smart contracts are utilized to fuel NEXO and for recording user balances.
How is Nexo Network’s Security?
Nexo is a private organization, so its responsibility is to provide safety to user funds and its networks. Nexo keeps the virtual assets with a cryptocurrency custodian known as BitGo, that stores these assets in cold wallets and is backed by $100 Million insurance.
NEXO, an indigenous token of the network, is an ERC-20 token, authorized on the blockchain of Ethereum, which conveys that on-chain NEXO transactions are secured and verified by mainnet of Ethereum through PoW algorithm.
At its release, Nexo stated that its indigenous token had entirely been audited. Back in November 2019, its smart contracts got freely audited by Castillo Network, where no vital safety issues were found.
What Solution Does Nexo Deliver?
Investors worldwide presently possess Billions of worth of digital assets that stay idle. It is anticipated that their value will grow more than $5 Trillion by 2025. Through it, folks can acquire fiat or crypto loans by keeping their digital assets in the Nexo wallet, making their idle crypto assets work.
Liquidating virtual assets is a time-consuming process, which can range from a few days to months, but through Nexo, folks can easily access cash all over the globe through cryptocurrency, bank transactions, etc.
While selling digital assets, folks are required to give withdrawal fees and more, creating liability of capital gain tax, making short-term liquidation process tax-inefficient and costly solutions.
In several instances, transactions including virtual assets are settled via P2P agreements, which lacks safety and clarity on both ends. Nexo network offers security and guarantees ownership of virtual assets by crystal clear blockchain loan contracts.
How are Nexo Tokens Distributed (Tokenomics)?
It has an initial token supply of 1 BIllion NEXO tokens, which is distributed among various areas as follows: Investors will have 525 Million of Tokens, Funding reserve will get 250 Million tokens, 112.5 Million tokens will be utilized for Airdrop campaign and Community development, 52.5 Million will be held by PR and legal advisory, and rest 60 million will be accessible by Nexo team and founders.
Who are Nexo’s Clients?
Cryptocurrency investors are among the most potential clients of Nexo. They are able to get instant funds based on their digital assets’ market price.
Crypto miners also utilize it for covering capital expenses like computing energy required by them for keeping up with contenders and for escalating their operations, which frequently requires mining rewards’ liquidation, and can be avoided by initiating an immediate crypto loan through Nexo.
Any crypto exchange or trading project can utilize Nexo’s loan services if they are seeking to raise funds to finance their trading facilities and margin lending.
Another potential client are Hedge Funds, who’ve made investments in crypto assets, ICO tokens, and other virtual assets, can leverage their portfolio through acquiring immediate cryptocurrency loans from Nexo and grabbing the benefits of the latest investment opportunities.
Other clients remain Crypto and ICO organizations, Gamers, VR users, etc.
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NEXO Live Prive Data
As of this writing, the token was trading at a market value of $2.03, and had a total market capitalization of $1.1 Billion. This market price indicates 1933.16% returns from the time of its initiation. It reached its all-time high back in November 2021, when it was trading at $4.63 at the time of its peak, indicating 4591.97 % returns today.
NEXO Price Prediction For Upcoming Years
Based on predictions by Wallet Investor, NEXO is anticipated to provide over 400% of returns. It is predicted that its price will reach $10.6 by the year 2027. If an individual is investing $100 in NEXO today, they may gain returns over $500 probably in the future.
Another prediction by Digital Coin Price makes forecasts that the token may trade at the range of $10-$11 during 2031.
Is Nexo Worth Investing?
Looking at its unique concept of offering loans, it is a prominent service for the individuals seeking loans, but struggle to obtain them. Nexo has the potential to grow in future, as it is developing continuously, and introducing new concepts to keep its network secure.
Apart from that, it is easy to use for folks, and provides a guarantee and security of digital assets via transparent blockchain loan contracts.
So, it is safe to say that Nexo is prominent and is already an established and significant project in the lending sector, convenient for folks and organizations to obtain easy loans against their digital assets.
Source: https://www.thecoinrepublic.com/2022/02/19/are-nexo-bulls-heading-to-breach-10-mark-in-2027/