Nexo is a blockchain-based lending protocol dedicated to creating innovative, convenient and sustainable solutions. It has successfully addressed inefficiencies in the lending market by leveraging the potential behind blockchain technology. After users deposit cryptocurrency assets on the Nexo platform, they can obtain the collateral, as well as the corresponding interest.
The founding team of Nexo comes from a European financial technology company called Credissimo which was established in 2007. When the traditional lending market was growing, it tried to add the option of bitcoin loan repayment to its business. Later, in 2017, it introduced the Nexo platform and a series of Blockchain financial products supported by strong financial capabilities.
A total of 39 cryptocurrencies are now available for instant lending as collateral through NEXO. Individual users can also enjoy services such as loans, borrowings, transactions, and credit cards on NEXO. Not only has NEXO been audited by Armanino's independent and real-time reserves, but also has assets under the custody of companies such as BitGo, Ledger Vault, Bakkt, etc. In the blockchain field, NEXO's vision of "allowing people to transfer or manage their funds in an efficient way" is gradually being achieved.
How NEXO works
In order to better "unleash the power of cryptocurrencies", the digital asset credit service of the NEXO protocol allows users to use their idle funds to gain considerable returns. Nexo's Credit Line allows users to obtain fiat loans by pledging cryptocurrencies, and the unique thing is that this credit line is dynamic, which means that if the user's asset appreciates, the credit line will increase accordingly, and this line will also have an impact on the accrued interest of the amount actually used.
Nexo's loan contracts are stored and replicated on the blockchain, so that they are immutable and verifiable. When the pre-written conditions are met, the loan contract can be automatically executed. The Nexo Oracle will continuously evaluate predefined conditions written on loan contracts, as well as asset value across multiple real-time transactions based on the external data sources, thus minimizing risk for both parties.
When users repay their loans, Nexo offers a variety of options, including fiat currencies (USD, EUR, JPY, etc.) or cryptocurrencies which allow users to repay the loan through a simple bank transfer. At the same time, the Nexo Oracle records transactions on the blockchain and updates credit limits as well as loan limits as soon as repayments are received. If a user has enough NEXO tokens to pay their accrued loan interest, Nexo offers a 50% discount on this total.
What is NEXO?
Launched on May 1, 2018, NEXO is the world's first compliant, dividend-paying asset-backed token. It has a total supply of 1,000,000,000 NEXO. Its compliance stems from the fact that the NEXO coin is the world's first asset-backed security with utility functions that meet the requirements of the U.S. Securities and Exchange Commission (SEC).
NEXO can be used for governance and issuing platform benefits, as well as receiving interest payments. Through NEXO tokens, Nexo shares 30% of its profits with NEXO token holders in the form of dividends. In addition, NEXO token holders can enjoy an annual interest rate of up to 18%. Users can earn interest from the NEXO tokens in the Nexo account's savings and credit wallets.
In addition, holders will be automatically enrolled in the Nexo Loyalty Program, which gives them interest discounts when they use an instant cryptocurrency credit line. Besides, by using the Earn suite, their cryptocurrency and fiat yields will be increased, and they can withdraw cryptocurrencies free of charge.
NEXO Crypto Wallet
In addition to placing NEXO in the Gate.io exchange for easy trading, users can also save NEXO in a crypto wallet.
Nexo Wallet is its official custodial wallet. However, in order to ensure that all custodial assets can obtain top-level storage services, NEXO's user assets are actually provided by BitGo, Ledger Vault and other partners, so that users' digital assets can be stored in different locations and in different hot and cold wallets, making it almost impossible for unauthorized persons to access, while also providing users with the necessary flexibility to operate efficiently in the dynamic cryptocurrency market.
However, users do not need to worry about the usage problems caused by the diversification of hosting infrastructure, because Nexo Wallet will unify all user asset information provided by hosting partners, and provide a comprehensive, easy-to-use, and convenient experience, allowing users to manage their own cryptocurrencies instantly.
There are two schools of thought in determining the price of NEXO.
By way of intrinsic value: This typically involves on-chain metrics, project metrics and financial metrics of NEXO, collectively known as fundamental analysis. The law of supply and demand, tokenomics, use case, project roadmap as well as regulations and governance involved would affect the value of NEXO from a long term perspective.
By way of price action: Primarily analyzed via candlestick chart patterns and technical indicators such as MACD, RSI and the bollinger bands, technical analysis forecasts the price of NEXO on the basis that history tends to repeat itself. As the candlestick charts are a general representation of the emotion of the market, news announcements and community sentiment can be significant price action drivers for NEXO as well.
HODLers tend to prefer the long term nature of fundamental analysis, whereas short term traders tend to rely on technical analysis more. In reality, both analyses may combine and create interesting scenarios for NEXO and the cryptocurrency market as a whole.
2. What is the highest price of NEXO in history?
NEXO achieved the all-time high of $4.07 in 2021-05-12, and is currently trading at $0.65.
3. What is the lowest price of NEXO in history?
In 2018-09-13, NEXO reached the all-time low of $0.045.
4. Should I buy NEXO now?
It is important to remember that NEXO, like all other cryptocurrencies, are subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, cryptocurrencies fluctuate greatly and it is important to manage your own risk level. Users are advised to do your own research when making investment decisions in the crypto market.