NEXO: Instant Crypto Backed Loan

Have you ever imagined that you could receive fiat currency without the need to sell the cryptocurrencies? How wonderful is that? Cryptocurrency owners would certainly be excited to learn about it. The new project in the town is project NEXO. NEXO is offering an instant crypto-backed loan that facilitates clients without the need to sell their crypto assets. The founders of NEXO come from the public company Credismo, which is already an established European FinTech Group instituted in 2007 and provides solutions across instant online consumer loans, e-commerce financing and bill payment services.

On May 7, 2014, Credismo listed 2.5 million shares on the public markets. One of the very important thing is compliance. Credismo is audited by Deloitte and is believed to follow regulatory requirements very strictly. It is being supervised by EU Regulators. No doubt that this lays the strong credibility for the NEXO.

It has been quite difficult to realize the true value of digital assets for investors. The investors are daunted with volatility, and increasingly feel the need of realizing the value of crypto assets without selling them. NEXO is answering solution to the same with the possibility to setup an instant cash loan in fiat currencies such as USD, EUR, and JPY after having crypto assets in the NEXO wallet without losing the ownership. The value of loan is calculated by NEXO Oracle depending on the market value of crypto assets. The liquidation process is very quick. Selling digital asset incurs transaction or withdrawal fees in exchanges and marketplaces, and is seen as taxable transactions. In NEXO platform, clients do not have to pay any transaction or withdrawal fees, and there is no sale event at all which effectively implies that there is no tax liabilities. Clients have possibility to withdraw amount through bank account or NEXO credit card.

The NEXO Oracle dynamically adheres to the condition of cryptocurrency market ups and downs, and duly prompts the client to take appropriate actions. This is one of the ways how the credit risk hedging is performed dynamically and automatically. Essentially, clients do not lose any ownership of assets unless they adhere to the rules and conditions. Clients can repay installment in the form of cryptocurrency or fiat currency. Transactions and payment through NEXO tokens provide discounts and effectively acting as a utility token.

The NEXO Oracle completely removes the need of credit checks and intermediaries, because all calculations is handled briskly through smart contracts and loan contracts embedded in NEXO oracle. Therefore, no credit check is required for client to liquidate the crypto assets. Moreover, transparency is retained through immutable transactions. The clients of NEXO product could be potentially such as cryptocurrency investors, hedge funds, crypto miners, crypto companies, cryptocurrency exchanges, and such whoever wants to liquidate the crypto assets without losing the ownership.

The NEXO project is certainly one of the revolutionizing project, because it is trying to capture the digital assets market that is expected to hit $5 trillion by 2025. Based on the global and systemic rise of blockchain programmable economy platform, assets such as Securities (ETFs, Equities, Bonds, etc.), Commodities (Gold, Oil and “Data”), Real Estate, Gaming and Virtual Reality Assets, Loyal Reward Points, and such have the tremendous possibilities to be tokenized.