What Is Nexo (NEXO): A Complete Crypto Finance Ecosystem

In 2018, Nexo launched to provide crypto lending services to users. It has since evolved into a full crypto finance ecosystem, offering its clients a variety of services that include buying, selling, swapping and borrowing against their crypto assets.

Let’s take a deeper look at this robust crypto ecosystem.

Key Takeaways:

• With fast and intuitive credit lines, Nexo is considered a pioneer in the crypto lending niche.

• As a fully-fledged crypto ecosystem, Nexo now offers a host of cutting-edge technologies that bridge traditional and digital finance. 

• Despite glaring controversies in recent times, Nexo has continued to provide the web3 market with innovative products, including the Nexo Card and Nexo Wallet.

What Is Nexo?

Nexo is a leading crypto financial services and lending platform with over 6 million users worldwide across 200 jurisdictions, and has processed over $150B in five years. The service aims to provide a better financial system in the world of digital assets by offering instant crypto-backed loans that don’t rely on credit scores.

It was founded in 2017 by Antoni Trenchev, Georgi Shulev (who was terminated in 2019), Kosta Kanchev and Kalin Metodiev. 

With a Nexo cryptocurrency account, you can borrow instantly in over 30 fiat currencies or in USDT or USDC, in addition to buying, selling and swapping a variety of major cryptos to grow your portfolio. 

The platform also allows crypto holders to harness value from idle savings by earning high-yield interest as passive income. 

How Does Nexo Work?

Nexo is a one-stop solution for all your crypto needs. Whether it’s a crypto loan or credit card or buying and selling cryptocurrencies, the Nexo platform has it covered. 

To access credit, users are required to deposit supported tokens into the Nexo Wallet. The platform supports over 60 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Ripple (XRP) and more. In particular, ETH and LINK tokens in the Nexo account have the potential to earn interest of up to 8% APR, and you can even swap them for higher-yield assets with up to 17% APR. 

You can also earn from swapping crypto. For every swap, you get to earn up to 0.5% in crypto rewards paid in the swapped currency. You can also use your crypto assets as collateral to borrow fiat cash or stablecoins almost immediately at 0% APR. The loan limit is calculated based on the value of the assets held in your account. Since the lending system is automated, you can access additional credit as your assets appreciate in value. 

Furthermore, Nexo has a multichain bridge to facilitate faster transactions at a lower fee. At launch, the bridge was exclusive to Ethereum-Polygon bridging of MATIC tokens, but has since expanded to other ERC-20 tokens such as LINK, AAVE and SUSHI, and stablecoins like USDT, USDC and DAI. With the Nexo cross-chain bridge, users can manage their assets in the Nexo Wallet, saving time and money in the long run. 

Nexo Platform Core Products

The Nexo team has leveraged their experience in fintech and blockchain technology to create an ecosystem that’s an all-around solution for everything crypto.

Let’s take a closer look at Nexo’s core products.

Instant Crypto Credit Lines

Nexo offers crypto credit-backed credit lines with digital assets as collateral. Simply put, you can borrow fiat currencies or stablecoins against your crypto savings. All you need is to top up crypto assets on the Nexo platform or app, and you have instant access to a credit line. 

Unlike conventional loans, your credit score does not count. Better yet, the loan doesn’t impact your credit score. The platform offers a credit line of between $50 and $2 million at a 0% rate with no extra fees, credit checks, origination fees or monthly payments required. 

Users can access stablecoins within half an hour in their Nexo accounts, while local fiat currencies may take from one to five business days for international transfers.

Nexo Exchange

On the platform's native crypto exchange, users can make unlimited swaps across over 500 market pairs at no fee. Thanks to Nexo’s intelligent routing system that connects with well-capitalized exchanges, users get the best market prices for optimum execution.

On Nexo Exchange, users trade at the true cost of the asset and a fixed rate without price slippage. What you see is what you get. The platform also offers the Nexo Booster, which allows you to perform single-asset and cross-asset swaps with between 1.25 and 3x leverage. The gains obtained from these trades can be used as collateral to secure credit and complete transactions.

Nexo Wallet

The Nexo Wallet is a smart contract–powered web3 wallet that allows users to build their decentralized identity and control their digital assets in a noncustodial way, allowing them more autonomy, security and privacy.

It offers a seamless experience, allowing both beginners and expert DeFi enthusiasts to aggregate their crypto and NFTs all under a single identity. Users enjoy greater flexibility in paying gas fees on their supported networks, whether in stablecoins, Wrapped Ether (WETH) or native tokens. Moreover, you can batch-execute numerous transactions, saving on gas fees.

To access Nexo Wallet, you'll have to create a noncustodial wallet or connect an existing one, such as MetaMask, and activate your identity on the networks you prefer to operate on.

Source: Nexo

Nexo Card

Nexo has created a unique crypto card that allows users to spend the value of their crypto without selling it. It offers many benefits, including integration to your credit line, allowing you to pay for your transactions worldwide without affecting your portfolio. 

Apart from letting you HODL, you can also earn rewards with every purchase. For instance, in the Platinum tier, you can get up to 0.5% when earning in Bitcoin or 2% in Nexo tokens. 

Other Nexo Card benefits include zero monthly/inactivity fees, free ATM withdrawals, tax liability optimization and access to over 40 million merchants worldwide. As the first crypto-backed credit card in the European Economic Area (EEA) in partnership with Mastercard and DiPocket, the Nexo Card remains one of the best crypto cards to hold today.

Nexo Pro

Nexo Pro is the next-level of trading on Nexo for both institutions and individuals. Its platform utilizes superior market intelligence and advanced trading tools to execute both short- and long-term trades for the best gains. Users can access Nexo Pro with their accounts and funds on Nexo for an effortless crypto trading experience. 

Nexo Pro connects users to more than 10 exchanges at once, meaning you get the most favorable prices. You can set custom alerts on your preferred indicators and track social sentiment, trending news, sector performance and more advanced data to ensure you don’t miss a trading opportunity. 

Some of the crucial benefits of Nexo Pro include integrating TWAP strategies to automate trading, placing a stop-market order to lock in profits or limit losses, and a host of leverage options to maximize profitability.

Source: Nexo

What Is the NEXO Token?

The NEXO token is Nexo’s native cryptocurrency. It was launched in 2018 as the first globally compliant, dividend-paying and asset-backed token. It opens up all the possibilities that users can enjoy, including high earning and low borrowing rates, and automatically places them in Nexo's loyalty program in one of four tiers: Base, Silver, Gold and Platinum, depending upon the number of tokens they hold against their portfolios. For instance, if a Nexo user holds 5% to 10% of Nexo in their portfolio balance, they’re placed in the Gold tier, which qualifies them for three free monthly crypto withdrawals, 0.25% in crypto rewards for swapping, up to 14% interest on deposited crypto assets, a 2.9% borrowing rate and more.

Nexo has a finite total supply of one billion NEXO tokens, with 560 million in circulation. In a bid to boost liquidity and reduce the token's volatility, Nexo has launched three buyback programs, with the latest held in Aug 2022 for $50 million.

Is Nexo Safe to Use?

Yes, it’s safe to use Nexo. To its credit, Nexo has proven to be a good platform for crypto lending and earning passive income on savings. With consistent innovative product launches aimed at giving users a seamless and wholesome web3 experience, it's safe to say that the team is dedicated to making Nexo a lasting success story. 

Compared to its counterparts BlockFi and Celsius, who have since filed for bankruptcy, Nexo has taken every measure to maintain its robust business model by matching its assets and liabilities and securing its users’ assets.

In terms of security, the Nexo platform is secured with an SSL secure connection, 2FA authentication and an end-user biometric identification protocol to ensure the protection and privacy of data. The team works with leading blockchain custodians like Ledger, using Class III vaults to protect users’ funds. 

Nexo holds over 40 licenses and registrations in different jurisdictions globally, and continually adopts new legislation to maintain its reputation and safeguard its users from malpractice incidents. Additionally, Nexo performs a real-time attestation of its custodial holdings to assure its users of its stability. 

Nexo Controversies to Consider

It should be mentioned that Nexo has experienced a fair share of controversial events and legal issues that have shaken its public image. 

In January 2023, Bulgarian police raided Nexo's office in Sofia to investigate alleged money laundering, unlicensed banking activities and tax crimes. Although the lender was cleared of any wrongdoing, its woes were far from over.

The U.S. Securities and Exchange Commission (SEC) charged Nexo with failing to register its retail crypto asset lending product, which had been introduced into the market around June of 2020. Nexo agreed to pay $45 million in penalties and ceased offering the product.

In May 2023, Nexo closed down two of its branches located in the U.K, namely Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. Co-founder Antoni Trenchev claimed that the closures were part of company restructuring, but such drastic actions cannot be easily dispelled. 

We also can’t ignore the infamous fight between Nexo and its previous co-founder, Georgi Shulev, that’s been raging since 2019 over $12 million worth of missing crypto assets. 

Despite these issues, we believe that Nexo is fairly safe to use. It’s a worthwhile investment if you’re looking for an all-in-one platform to grow your wealth in the DeFi sector.

Nexo Crypto Price Prediction

As of Aug 3, 2023, NEXO’s price is $0.64, which is 84.11% lower than its all-time high (ATH) and over 1,300% higher than its all-time low (ATL). Its ATH of $4.07 was recorded on May 12, 2021, and its ATL of $0.045 was recorded on Sep 13, 2018.

Price prediction experts are generally bullish on NEXO. According to DigitalCoinPrice, NEXO could hit a price of $2.28 in 2025 and rise to $6.71 in 2030. Another price forecasting platform, PricePrediction, shares similar sentiments, with their experts believing NEXO may hit prices of $1.87 in 2025 and $13.14 in 2030. 

That said, these bullish price predictions aren’t a guarantee of future NEXO prices. We highly recommend that you do your own research before investing in NEXO or any other altcoins. 

Is Nexo a Good Investment?

Nexo could be a good investment for a number of reasons. It began as a crypto lending platform, but its knack for constant innovation has powered it into a leading crypto finance system. As a Nexo user, you can look forward to better products and services that enhance your overall experience on the platform and, even better, give you high-yielding returns.

Nexo’s stable management, resilience in the digital lending space and steady selling price also indicate that it’s an excellent long-term investment. Put simply, Nexo is here to stay, unlike many of its competitors who have proven susceptible to the perils of the blockchain industry. 

But again, the recent controversies surrounding the company, including the legal troubles discussed above and the dispute with co-founder Georgi Shulev over a ledger containing part of the company's holdings, may put a dent in its future prices. Sound financial advice and analysis are crucial before investing in Nexo or any other project.

How to Buy NEXO Tokens

Buying NEXO tokens is easy, and you can purchase them on Bybit as a Spot pair.

Here are the steps to complete the process:

• Create a Bybit account on the Bybit web or Bybit app.

• Make a deposit using crypto from an external wallet, or deposit fiat currency to purchase crypto on Bybit.

• Navigate to the Spot market hub to select the NEXO/USDT pair.

• Input the necessary buying information.

• Click on Buy NEXO to execute the trade.

Now you can buy, sell and swap your NEXO to grow your portfolio.

Closing Thoughts

Despite its recent troubles, Nexo's future is undeniably bright, not only as a lending platform but as a solution to everything crypto. With its host of products, such as an affordable credit line, the convenient Nexo Card and the intuitive Nexo Pro, users can grow their wealth as well as gain passive income on idle savings.

Nexo opens up immense possibilities that suit beginners and experts alike, and more enthusiasts are bound to join the Nexo community.

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