Today, the crypto space can be regarded as one of the fastest growing industries in the world. Even though the sphere is currently enduring worsening market conditions, majorly inflicted by global economic downturns, it is expanding courtesy of its continuous rise in adoption level. Over time, the industry has continued to enjoy increasing adoption in spite of its volatility. As of today, traders spread across the globe harness cryptocurrencies daily to execute their respective goals. According to statista, the overall 24 hours crypto trading volume now amounts to over $200 billion. Worthy of note that these cryptocurrencies, including BTC, Ether, Nexo crypto and others are utility-driven, but irrespective of how they are used by investors, their major function is serving as a medium of payment and investment, thus relegating the traditional approaches to doing these things.
Further, some of these crypto assets run to serve as native tokens to numerous virtual protocols, serving as instruments through which their users make payments for the services or transactions carried out. Worth noting that the nexo crypto is one of these cryptocurrencies. Meanwhile, occasioned by the worsening market outlook, investors reading this article are advised to look before leaping. This piece is not geared towards relaying a financial advice. But just like other cryptocurrencies, the nexo crypto remains one of the available crypto assets available for investors to explore within the sphere. With this article, new and existing investors will learn more about the rudiments of the crypto, its background and native protocol.
Nexo crypto: A General Overview
Remarkably, nexo crypto runs as the native token of Nexo, a popular lending protocol. It runs as a utility crypto, thereby helping to fuel, power and safeguard its native platform. More so, the token can be bought, sold, and purchased, just like its contemporaries. As of today, traders explore the token on numerous crypto exchanges, including HitBTC and a host of others. Additionally, nexo crypto serves as an instrument for sending and receiving payments. Notably, users of the platform usually harness the token to pay transaction fees on the network.
Worth noting, nexo crypto is traded as restricted securities. Users harness the tokens to make repayments of loans to Nexo, thereby enjoying at least 50% discount on interest rates. Further, holders of the token enjoys governance rights, allowing them to participate in decisions geared towards fostering the project. Nexo crypto also enable users to enjoy a higher loan limits than others. Additionally, its holders usually enjoy a 30-perfent Nexo profit-share payment.
Notably, holding nexo crypto also helps to increase the loyalty tier of users. However, the amount of NEXO tokens users hold usually determines their position in the platform’s loyalty program. Its holders also benefit from a top-tier $775M insurance secured by Nexo’s trusted custodians. According to findings, the token possesses a total supply of 1,000,000,000 NEXO. Meanwhile, its current circulating supply stands at 560,000,011 NEXO.
As a native platform of Nexo crypto, Nexo manifested to offer crypto-oriented loans to users. Remarkably, the platform, according to its whitepaper, aims to become the world’s largest and most trusted lending institution in the evolving digital finance market. As a regulated crypto lender, Nexo seeks to ease the acquisition of crypto loans, thereby solving the complications and inefficiencies rocking the lending markets. In its whitepaper, the project maintained that it aims to achieve this by developing innovative, convenient, and sustainable solutions. More so, Nexo usually harness the prospects associated with blockchain technology to ensure its users access crypto loans conveniently.
Interestingly, borrowers usually receive Nexo loans on the same day or the following day. They receive the loans through bank transfers via SEPA, SWIFT and other payment methods. However, Nexo loans possesses a limit. The platform usually calculates the loan limit in line with the value of the crypto assets held in customer’s Nexo account. As designed, nexo oracle, which serves as the heart of the platform usually employ the Loan-to-Value (LTV) ratio to determine if a client deserves such loans. By virtue of this, the oracle determines the final amount of loans given to borrowers and the repayment terms. Beyond this, Nexo oracle also handles other functions. It aids the network governance of the platform. More so, it handles data analytics of nexo, thereby fostering the effective distribution of loans.
How does Nexo safeguards its network
In a bid to safeguard its network, Nexo usually employ numerous strategies. First, the platform keeps assets with reliable blockchain custodians, including Ledger. Remarkably, it stores these assets in class III vaults of these custodians. Beyond this, Nexo uses 2FA authentication and biometric verification to secure its network. This ensures the safety of users, particularly in terms of their accounts. With this, nexo ensures the privacy of users. Also, the security features enables them to stay in charge of their accounts.
Notably, the protocol of Nexo Crypto manifested to provide instant crypto-supported loans. As the first of its kind, the project seeks to mending the bridge of inadequacy of loans in the market. It is imperative to note that the protocol of Nexo Crypto employs smart contracts and an oracle on Ethereum to manage loans. The protocol works in such a way that it avails a loan to a user by allocating the funds once such a user transfers crypto into a wallet that’s connected to the protocol. For repayment, the protocol of Nexo crypto also employs such a system. It makes available the record of repayment on the blockchain once a user deposits service loans.
Likewise, the project enjoys the patronage of institutional investors, cryptocurrency exchanges, miners and other firms in the industry. Therefore, establishing the project among them for due recognition. Also, the firm behind Nexo crypto and its protocol offer consulting services. So aiding the firm to generate revenue through consulting services, institutional loans and interest accumulated on every lending process. However, Nexo crypto serves as a means of settling payment on the platform and it has gained reputation in the industry. Its imperative for users of its protocol to hold to token in other to perform certain functions. The relevance of Nexo crypto in its protocol cannot be over-emphasised but the token still has major shortcomings in terms of adoption.
Roles of Nexo crypto in its ecosystem
As the native token of its protocol, Nexo crypto is of high relevance. Numerous usefulness seems attached to the token that makes it almost a must-have for users of the project. Aside from being available as a means of payment within its ecosystem, holders can earn passively with Nexo crypto. Currently, the firm runs a loyalty program that rewards holders of the token. The loyalty program places holders of Nexo crypto in a position where they receive their share of a 30% allocation of funds through the gains of the firm. Therefore, placing holders of Nexo as critical stakeholders in the project. Holders get their share as a dividend for keeping Nexo crypto in their wallets.
More so, the holders of the token get special treatment. They get a subsidized interest rate on loans and higher returns on their savings. All these incentives and preferential treatment helps to encourage investors to acquire the token. Though the strategy has attracted investors to buy the token, yet, it still struggles for relevance outside its ecosystem. Like most native tokens, the utility of Nexo crypto seems limited to its protocol, except for a few investors who acquire the token to invest. Nevertheless, the lack of utility and use cases for Nexo crypto outside its protocol remains a major delimitation for the growth of the coin.
How Nexo crypto is faring; present and future
Nexo crypto enjoyed a an impressive market performance during the cryptocurrency boom of 2021. In the Q4 of the year, the token soared massively in a reactive pattern to the prosperity of the industry. Thus, enjoying a sizeable attention from investors. The intruding bear market of 2022, pushed the value of the token swiftly downwards alongside other notable digital assets. Nevertheless, the token still projects a positive return on investment of about 595.63%.
Above all, the token like most other virtual assets has shown a high degree of volatility. In different instances, Nexo crypto has reacted to the prevailing market conditions, either positively or negatively. Despite showing a sharp volatility, investors can take positive note from the reality that Nexo crypto has a good ROI. This shows that the token will regain its market price stability once the crypto market sees the end of the troubling waters.
Also, one must commend the efforts of the firm behind the token for its relentless commitment towards the growth of Nexo crypto. The company is running a “Nexonomics” initiative to drive its tokenomics and improve the market value of Nexo crypto. With the initiative, the firm is working to buy about $12 million worth of Nexo crypto.
Final Thoughts on Nexo Crypto
In the long run, Nexonomics will aid Nexo crypto to have a positive market value. It will convince investors to acquire the token. Likewise, the popularity of the loaning initiative of Nexo will contribute to the growth of its native token. Nonetheless, investors must be mindful of the size of investment they entrust into the coin. The prevailing crisis in the market may in one way or the other affect the stability of the project. It’s on this note that investors must make market research, follow trends and analyze the market situation before committing their funds.
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