If you have ever thought about investing your money or digital currencies at a fixed interest rate or taking out a quick crypto loan without selling your crypto currencies, then our Nexo Test 2020 is the right place for you.
In this article we put Nexo through its paces. We take a closer look at the crypto-credit functions, the native token (NEXO), the Nexo credit card and the possibility of investing money and stablecoins at a fixed rate of return.
Nexo's success story has its roots.
Nexo is part of Credissimo, a leading European FinTech Group, which has been successfully present on the market since 2007. Credissimo specializes in instant online consumer loans, e-commerce financing and payment services. Credissimo is now the market leader in the field of online consumer loans in several European countries.
In addition, Credissimo complies with the regulatory requirements of the EU banking supervisory authority and has been closely monitored by several European regulatory authorities for banking and financial services since 2007. The company has granted a total of 175 million US dollars in loans and raised 222 million US dollars since 2014.
Nexo was launched by Credissimo at the end of 2017 as the world's first instant crypto-credit company. This means that behind Nexo is not only a 10-year success story of a well-known FinTech company, but also an innovative idea that offers new opportunities to borrowers and investors.
Nexo is the leading FinTech company for instant crypto loans
In less than two years, the Swiss-based company has processed more than 500 million US dollars for over 200,000 Nexo users and received credit requests for 1 billion US dollars. Nexo now supports 200 countries and more than 45 different currencies. Nexo focuses not only on the classic B2C market (i.e. private individuals), but also on B2B business with other companies.
In addition, 50 million US dollars were successfully raised through an ICO (=Initial Coin Offering) in early 2018. In return, the investors received the NEXO token. With this token, users of the platform receive (among other things) improved conditions when taking out and repaying a crypto loan. In addition, fixed dividends will be paid to the holders - more on this later.
How can I take out a crypto-credit with Nexo?
On Nexo, anyone who owns Bitcoin or other crypto currencies can take out an instant crypto loan in FIAT (Euro, US Dollar, etc.) or in a Stablecoin - without selling their crypto currencies. This offers an enormous advantage, especially in Germany, since the tax-relevant one-year holding period remains unaffected. As a reminder: Selling crypto currencies below the holding period of at least one year entails a tax burden. However, borrowing with the deposited crypto currencies does not constitute a tax-relevant event.
Nexo offers an immediate crypto-credit for crypto-currencies deposited on the platform by the users. These serve accordingly as security and grant a different credit limit without prior credit check. All deposits with Nexo are insured with up to 100 million US dollars by the world's leading asset manager BitGo and the London insurance group Lloyd's.
Invest money and Stablecoin with Nexo at 8% per annum.
Nexo's business model also offers investors a wealth of opportunities. Currently, investors can invest their money (=EUR, USD and GBP) or stablecoins (=TUSD, USDT, USDC, PAX and DAI) at 8% per year with no fees or hidden costs.
This happens automatically when you transfer FIAT or a Stablecoin of your choice to your Nexo Wallet. Payouts are made daily and there is no minimum maturity period. The investor can transfer his crypto-currencies out of the Nexo Wallet at any time.
In the next step, Nexo also plans to integrate crypto currencies such as Bitcoin (BTC) and Ethereum (ETH). In the future, investors will be able to invest Bitcoin and other crypto currencies at a fixed annual rate of return, benefit simultaneously from a price increase and not interrupt the holding period of one year.
Nexo pays 30% of its profits in the form of NEXO token dividends
Nexo has come up with some use cases and mechanisms to give the native NEXO token a value and to reward the NEXO holders additionally. Regardless of the discounts on borrowing, Nexo pays a dividend to all holders of the NEXO token.
Nexo pays out a total of 30% of its profits to the NEXO holders in the form of dividends. Nexo wants to reward the block chain community and investors and create a decentralized income structure.
The last dividend payment took place in December 2018 and paid out a total of $912,071 to NEXO holders. There were a total of 309,658,705 dividend-bearing tokens as of the record date. This gives a dividend yield of 4.80% for NEXO. Compared to the dividends in Warren Buffet's portfolio, NEXO performs best: Apple 1.4%, JPMorgan 3%, Wells Fargo 3.3% and Goldman Sachs 1.6% p.a.
Nexo rewards the NEXO token long-term holders with additional dividends
In addition, Nexo rewards investors' long-term confidence in Nexo while reducing market volatility around the ex-dividend date. This approach results in the profit sharing being split into two parts:
Basic dividend - payment to all eligible token holders in proportion to their NEXO token holdings
Loyalty Dividend - is paid individually for each NEXO token, based on how long it is in the Nexo Wallet from one ex-dividend date to the next. The share of the Loyalty Dividend is at least 1/3 of the total dividend amount distributed in a given period.
In order to be eligible for the dividend payouts, a KYC (Know Your Customer) must be carried out on the platform. This can be done in just a few steps via the Nexo platform.
Get your NEXO Token today and benefit from the next dividend payout. The NEXO token can be easily purchased on the Huobi exchange.
Last but not least: the Nexo card
Nexo also offers borrowers and investors a Nexo card. This works similarly to a credit card and can be easily integrated into everyday life. This means that the crypto-credit taken out can be used with ease without any additional transactions or withdrawals. In addition, there are no hidden costs, no additional fees and no minimum monthly repayment.
The advantage is that the user does not have to sell his crypto currencies. With the Nexo card, the credit limit for the deposited crypto currencies is automatically calculated and can be used by the user anywhere at any time. With approx. 8% interest per year, this is a real alternative to Mastercard, Visa and Co.
In addition to the 'classic' credit card, Nexo also offers a digital credit card in its own app. This credit card is secured with various digital assets and is subject to the highest security standards. In addition, the Nexo app offers a full analysis of the expenses, a tool to keep an eye on your budget and the possibility to block/unblock the credit card.
Nexo offers an all-in-one solution with its revolutionary business model. It offers instant crypto loans, a fixed 8% return on invested Stablecoins and FIAT, and a Nexo card that offers a huge cost advantage over major credit cards. Added to this is the NEXO token, which is Nexo's native means of payment and pays regular dividends to NEXO holders. Nexo is one of the few companies in the crypto space that makes a profit and fulfils a real use case. The success of the company speaks for itself.
The company's success and especially the 8% annual return on FIAT and Stablecoins, can only work if on the other hand enough people take out a crypto loan and pay higher interest rates. The ratio is not publicly visible on the block chain at Nexo. Therefore, Nexo can reduce the annual yield in the future or increase the interest on a crypto loan so that the business model can continue to work. Nevertheless, a certain amount of trust in the company is inevitable.
At this point, regardless of Nexo's successful business model, we want to distance ourselves from a risk-free investment. Every company is subject to certain market risks and every investor or investor should be aware of this. The fact that its own assets are not in a Smart Contract means that there is a certain dependency on the company, similar to crypto stock exchanges such as Binance or others.
So, if you want to give Nexo a try click here.