Nexo (NEXO) –The advent of Blockchain technology years back has been with the intent of revolutionizing many industries. It seems that financial institutions most especially consumer lending are top on the list.
Crypto loans when it is compared to traditional loans offers a lot of advantages. These advantages include efficiency, transparency, security, and possibly the most noteworthy is the usage of cryptocurrency as collateral.
There has never been a form of collateral that is as efficient as crypto before now. For any particular crypto asset, blockchain allows for instant confirmation of its authenticity, ownership, and value, allowing almost instantaneous backing for a loan.
For instance, when you compare this to a traditional equity loan that may require an evaluation, personal records, tax assessment, and proof of insurance, amongst other documents, the advantages is very clear.
If the trend toward a tokenized world continues unabated then the market potential for crypto loans may well expand exponentially. The efficiency of crypto as collateral and the increasing capitalization of the cryptocurrency market advocate that it may soon win an enormous section of the worldwide consumer loan market which is projected to reach $48.3 trillion by the year 2019.
As such it is a massive opportunity for blockchain companies in the cryptospace to look into as there isn’t much competition yet.
Nexo is a blockchain company established in 2018 by Credissimo, a fintech company based in Europe. They offer USD and EUR-based loans that are backed by Bitcoin (BTC), Ethereum (ETH) and Nexo (NEXO).
Nexo (NEXO) Business Model
By using the blockchain, Nexo provide loans directly to borrowers. There are no extra lenders on the other side of the contract since Nexo supplies the funding.
As such with the approach Nexo uses, the interest rate and loan terms are always the same. The moment a client (user) deposits crypto assets into a Nexo wallet, they are immediately approved. And in the world of blockchain where speed and simplicity is valued, you will agree that Nexo is a god sent.
Available Currencies on Nexo Platform
Nexo make available loans in USD and EUR while borrowers can pay back with USD, EUR, Bitcoin, Etherum and Nexo tokens. In fact Nexo has the most currency options for its clients.
Nexo (NEXO) Eligibility Check
There is no credit check required for Nexo, it has no limits on eligibility and it is available worldwide with no restriction.
Nexo (NEXO) Cost Fee
Nexo has a lone interest rate with no extra fees. There is also no requirement to buy tokens or a membership. . Nexo offers a no-fee platform. The only thing is that borrowers will receive a discount if they use Nexo tokens to repay the loan.
Nexo instantly approves crypto loan insomuch as the client deposits crypto assets.
Nexo Method of Disbursement
Nexo disburses fund using ACH bank deposit. Efforts are ongoing on bringing a free credit card before the end of 2018, which will make funds available immediately for borrowers.
Nexo (NEXO) Repayment Terms
As long as balance is still within the overdraft limit, Nexo does not require monthly payments. It also permits repayment in several currencies. By this means it gives its client the benefit of repayment flexibility.
The Nexo token offers a discounted interest rate if it is used to pay off the loan. In addition, Nexo token holders receive a percentage of company profits as dividends. The Nexo token is the first SEC_approved security token. The discounts and dividends are of great benefit to users and the SEC approval reduces risk for investors.
Nexo (NEXO) Team
Kosta Kantchev is the managing Partner of Nexo. He was previously the co-founder of Credissimo. Micheal Arrington, the founder of Techcrunch and Trevor Koverko, the CEO of Polymath serve as advisors. The parent company of Nexo , Credissimo, has over 10 years’ experience working in the lending industry and the bring these experience to bear on the Nexo platform.
It is evident that the blockchain-based loan backed by crypto assets market has the capacity to disrupt the traditional lending industry. Even though the market is still in its infancy, it could become a multi-trillion dollar market.
As such Nexo (NEXO) and existing or upcoming competitors had best position itself properly to exploit this unique opportunity as the market seems to have the capacity to support multiple competitors.