The Nexo team released an update today on the future of their project while also clarifying misconceptions about the rapidly-growing lending platform.
Nexo claims their key business model “is unchanged” but that the company is:
“actively exploring new avenues to maximize token utility and investor value.” The company also claims their ultimate goal is to become “a multi-billion dollar financial institution.”
While few people had heard about Nexo several months ago, the crypto lending platform has become a leader in the space. In fact, the company claims to be “the market leader in the crypto lending space”. Their goal is to solidify that position moving forward while continuing to expand.
Nexo also provided an update on its Nexo Card, which will launch in Europe first before expanding to clients in other countries worldwide. The company claims any delays in launching the Nexo Card will be caused by third parties – not Nexo itself.
Nexo also clarified its deployment of different collateral requirements and a new lower loan minimum of $100. The company claims these programs “have been IT-ready for months” but the deployment of the programs has been on hold while Nexo secures additional funding.
“This has been done to meet the enormous loan demand that will inevitably result from introducing them,” adds Nexo.
The next Nexo update, meanwhile, is scheduled to be released in June for iOS and Android. Also in June, Nexo plans to announce the ex-dividend date for the next Nexo Dividend.
One final bit of news from the blog post is that TRON will be onboarded as a new collateral option as part of the June update.
“Nexo Continues to Be the Undisputed Market Leader in the Crypto Lending Space”
One of the most important points of this latest blog post is that Nexo see itself as the undisputed market leader in the crypto lending industry.
The company plans to grow that reputation moving forward:
“while delivering new features, functionalities and new opportunities to further enhance the Nexo product offering and to maximize value for the NEXO token holders.”
Nexo Clarifies Misconceptions and “FUD” About Project
Another important point of the blog post was to clarify misconceptions about Nexo and the NEXO token.
“For too long have we ignored the malicious spreading of misinformation about Nexo and the NEXO token,” explains the Nexo team in the blog post.
The blog post goes on to describe the NEXO token as
“an income-generating digital asset with significant growth potential.” However, they also caution that FUD has “affected both the token price and the Nexo community.”
Some of the specific points they wish to clarify about Nexo and the NEXO token include:
Key Points of the Nexo Terms Have Not Been Changed, Although Smaller Points Have
Some in the community believe that the NEXO token terms have been quietly adjusted multiple times. Nexo doesn’t deny that the terms have changed, but they maintain that “essential features” like the 30% profit-sharing and the Nexo Dividends program have not bee changed.
However, Nexo didn’t deny adjusting certain terms over the last few months:
“While there are no major deviations from the initially set terms, changes are, of course, sometimes needed in order to adapt to new circumstances and changing business and regulatory realities. An example would be the introduction of the Loyalty Dividend which was not included in the initial Token Terms but was added later on — a move hugely appreciated by the community.”
The company claims that any major changes to the terms and conditions will only move forward with community review.
The Nexo Card Has Been Delayed, But for Reasons Outside of Nexo’s Control
Certain members of the community have also been spreading FUD about the launch of the Nexo Card. The card has been delayed, although Nexo claims the delays are the result of things “that unfortunately Nexo has no control over.”
Nexo claims Visa and MasterCard have “very strict policies” on who can get approved for a card program, and that both companies are very conservative over crypto-related businesses. The companies also have detailed application processes required for each country – there’s no pre-set international card program available.
Nexo claims they “did get approvals” but were also subject to “additional due diligence processes”, and both Visa and MasterCard required the company to amend certain terms.
It’s still unclear when the Nexo Card will launch. Here’s all that Nexo has to say about the launch date:
“The Nexo Card will first become available in Europe with more parts of the world following suit.”
Nexo Continues Dropping Minimum Loan Requirements
When Nexo launched its lending service last year, there was a minimum loan requirement of $5,000. That limit was gradually dropped to $500.
Next, the goal is to drop the minimum loan requirement to just $100. However, Nexo claims there are two main reasons why they have not yet lowered the minimum to $100:
- “Nexo does not charge its users any bank transfer fees and we would like to keep it that way”
- “Lowering the loan minimum to $100 or aggressively adding more collateral options would further increase the demand side which we might not be yet ready to back with enough financing.”
In other words, Nexo doesn’t want to compromise the user experience by lowering the loan limit to $100. Nexo also claims the reasons above are why they have delayed the launch of their affiliate program.
TRON Will Be Onboarded in June
Earlier this year, Nexo launched a community poll to determine which cryptocurrency should be onboarded to the platform next.
Nexo claims the decision was “unambiguous”, and that TRON would be the cryptocurrency onboarded in June.
What’s Next for Nexo?
June will be a big month for the Nexo team. The company is going to announce the ex-dividend date for the next Nexo Dividend in June. Nexo is also onboarding TRON and updating its mobile apps in June.
It’s unclear when the Nexo Card will launch, although it seems possible the card will launch in Europe before the end of the year.
The Nexo team clearly believes the future is bright not just for itself – but for crypto in general. They claim we’re in the middle of ‘Crypto Spring’ after a prolonged ‘Crypto Winter’:
“With the tokenization of the world, Nexo is in a perfect position with its leading automated lending infrastructure to capitalize on the widespread adoption that established behemoths of the financial world such as JP Morgan, Fidelity, the Yale Endowment fund and Facebook will ensure. The total addressable market for Nexo’s products thus rises to the trillions and we are happy to have you in for the ride!”
Nexo (NEXO) has jumped 46% over the past 24 hours and now sits in the top 100 cryptocurrencies by market cap (currently holding the #100 position).
However, NEXO is still trading significantly lower than its all time high price of $0.39 from May 2018, currently trading at a price of around $0.11.
Author: Andrew T