Home » What is Nexo used for | Nexo a good investment?

What is Nexo used for | Nexo a good investment?

Nexo – What is it? Is it a good investment for future?

This Article talking about the cryptocurrencies Nexo, will it cost $10/token? and is it or any relative with Ponzi Scheme…….. You can also check our blog for update crypto news……

Nexo Price

Nexo was based on a workforce of finance professionals and crypto enthusiasts, who turned to blockchain to create the crypto similar to a service nicely established in conventional finance, but hitherto non-existent in digital finance— borrowing in opposition to the worth of your property whereas retaining ownership. In 2018, the group launched the Nexo platform, providing the world’s initial crypto credit score strains that allowed digital asset holders to acquire fiat and stable coin loans towards their cryptocurrency, and thus setting the foundations of the crypto lending niche.

It’s a blockchain-based lending platform that gives customers prompt cryptocurrency-backed loans. customers deposit an accepted token — comparable to Bitcoin (BTC), Ether (ETH), Litecoin (LTC), or XRP (XRP) — as collateral to get a mortgage within the type of fiat foreign money or secure coin.

It has a local token, NEXO, that when locked within the platform grants customers advantages corresponding to reductions in curiosity gathered on loans and the chance to get curiosity funds on funds deposited. Token holders additionally obtain dividends from Nexo’s profits. The challenge was initially introduced in Dec 2017, and it launched in Apr 2018.

The corporation announced, in Oct. 2020, that it was launching a “Nexonomics” initiative to drive its tokenomics and enhance the worth of NEXO. The corporation subsequently revealed that it could repurchase US$12 million value of NEXO.

Official Site

Nexo has a max. supply of 1 billion tokens. The supply was allocated as the following:

  • 525m – 52.5% of the max supply for sale to investors.
  • 250m – 25% of the max supply for the company’s overdrawn funding reserves, subject to a 12-months vesting interval with a six-month cliff;
  • 112.5m – 11.25% for the co-founders and team members, subject to a 48-months quarterly vesting period;
  • 60m – 6% for community airdrop campaigns and building, subject to a 18-months quarterly vesting period;
  • 52.5m – 5.25% for advisors, marketing and legal costs, subject to a 12-months vesting period;

Bull views:

The corporation initially deliberate to own a public presale and predominant token sale, it later canceled its public gross sales as a result of an amazing number of curiosity from buyers in its personal sale.

The company is the first-ever supplier of prompt cryptocurrency-backed loans and it intends to resolve inefficiencies within the lending market. Its automated lending course makes use of Brainy contracts and an oracle on the Ethereum blockchain to administer loans. Later a person transfers cryptocurrency to a Nexo-controlled wallet, the oracle establishes the mortgage and the person is immediately allotted the funds. When the person makes a deposit with the intention to repay the loan, the oracle returns the cryptocurrency and data the transaction on the blockchain. Brainy contracts are used to energy NEXO and to file consumer balances.

Nexo is marketed to particular person and institutional investors, cryptocurrency companies, exchanges, miners and others who yearn for liquidity from their assets. the corporate makes a benefit from the curiosity accrued on loans, and it additionally presents institutional lending and consulting services.

Nexo seeks to construct a person vulgar of purchasers that keep going to make use of the platform and stay invested in NEXO. As such, the corporation introduced a loyalty program that rewards those that preserve NEXO of their accounts, giving them preferential rates of interest on loans and better yields on savings. Nexo additionally distributes 30% of its earnings to NEXO token holders within the type of dividends.

But we still need to consider the Weaken point:

The corporation business model just like a bank – collect deposit and lending to others. They pay a very high rate for crypto deposit. But lending on around same as the deposit interest rate. I am very doubtful, will it can running for long time. It look like a Ponzi Scam as my old article said the company promise you some things but actually it cannot work. But their biz model had a littlie bit different is they are only promise for pay a high level yield by their own crypto ” Nexo “. So, it is very interesting to see the management how to survive in that gap.

Nothing shared by way of 3hkmarket constitutes an investment recommendation, nor own any info or content material posted by the use of 3hkmarket be relied upon for any investment. 3hkmarket strongly recommends that you simply carry out your very own unbiased research and/or talk with an authorized investment skilled sooner than making any monetary decisions.

Disclamation: I had hold and Deposit some Crypto currency in Nexo.

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