Nexo Set To Boost Token Value With $100 Million Repurchase Efforts

Crypto-focused lending platform Nexo is looking to boost its token value. In a tweet, Nexo said it would be launching a second set of its hugely popular buyback programs starting November 15.

Nexo’s Second Repurchase Efforts

According to a blog post, the new buyback program will be worth $100 million – a far cry from its first repurchase effort worth $12 million earlier in the year.

The buyback initiative is expected to last up to six months and will see the blockchain-based lending platform use the repurchased NEXO tokens in key strategic investments through token mergers and for dividend payouts for customers who receive their yields in NEXO.

Nexo says that its Board of Directors reached the decision, and the body of executives will likely review the success of this new effort after the six months window. This will allow them to measure the success or otherwise of the buyback program and may likely extend the repurchasing period.

For now, Nexo will be repurchasing the Ethereum-based NEXO tokens on the open market and at different prices.

Revenues generated from trading pairs pegged to the NEXO token, loans taken out on the ERC-20 token, and trades done on its exchange will be reinvested into the repurchase efforts.

The repurchased tokens will be locked in an Investor Protection Reserve (IPR), and it will be for a vesting period of a year. After this, the locked tokens will be used to run the protocol’s daily activities surrounding interest payouts, investments, and token mergers.

The Nexo blockchain has remained a popular destination for crypto-collateralized loans, with over 1 million users interfacing with the platform. This follows a growing interest in low-fee and high-yield protocols in the crypto market. Nexo has BlockFi as a rival, with both lending platforms vying for a large share of the crypto market.

Buyback 2.0 Expected to Boost NEXO

Nexo’s first repurchase efforts, worth $12 million at the time, paid substantial dividends. This saw the NEXO token surge to an all-time high (ATH) of $4.07 on May 12, reflecting a 2,430% surge year-to-date (YTD). In retrospect, NEXO has kept in tandem with the broader crypto market, given that it is tied to the price action of Bitcoin.

With such remarkable success, Nexo’s Board of Directors has deemed it fit to reintroduce another buyback program to keep its token top-of-mind among investors. According to the press release, the $100 million effort is geared towards improving the liquidity of the NEXO token and boosting its long-term value.

Alongside this, the crypto lending protocol also noted that its renewed efforts would help in enabling more institutional access into the crypto landscape.

This is following recent investments in Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC) regulated broker-dealer Texture Capital, decentralized solutions company Qredo, and decentralized finance (DeFi) provider Yield.

Meanwhile, the broader crypto market downtrend has had its toll on the ERC-20 token. The virtual currency is trading at $3.336, down 5.15% in the past 24 hours. Currently pegged at 74th on the global crypto rankings, NEXO has over $1.8 billion in market cap.

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Author: Jimmy Aki

NYAG Now Goes After Crypto Lenders, Nexo Says It Doesn’t Offer Services In New York Anyway

NYAG Now Goes After Crypto Lenders, Nexo Says It Doesn’t Offer Services In New York Anyway

After settling charges with Tether and Bitfinex for $18.5 million, the New York State Attorney General has now asked two cryptocurrency lending platforms to cease activities in New York. Three other platforms have also been directed to provide information about their business.

In a redacted letter, Letitia James said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities.”

Crypto lending platforms that are interest-bearing accounts offering investors a rate of return on crypto deposits are required to register with the Office of the Attorney General (OAG) if they are operating within the state or offering their products to New Yorkers said James on Monday. She added,

“Cryptocurrency platforms must follow the law, just like everyone else.”

The two companies are reportedly Celcisus and Nexo. Celsius Network is already targeted by Texas, Kentucky, Alabama, and New Jersey regulators for its interest-bearing accounts, which the local regulators allege violate local securities laws.

This month, the company with over 1 million registered users and $25 billion in assets under management raised $400 million from equity firm WestCap and Canada’s second-largest pension fund Caisse de dépôt et placement du Québec, at a valuation of $3 billion.

Nexo Finance took to Twitter to clarify that it already restricts access to its Nexo Exchange Service and Nexo Earn Interest Product to the citizens or residents of the States of New York, Texas, Kentucky, New Jersey, Alabama, Oklahoma, Arkansas, and Washington, as such the letter doesn’t make any sense.

“Nexo is not offering its Earn Product & Exchange in NY so it makes little sense to be receiving a C&D for something we are not offering in NY anyway.” “But we will engage with the NY AG as this is a clear case of mixing up the recipients of the letter. We use IP-based geoblocking.”

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Author: AnTy

Digital Assets Lender, Nexo, Rolls Out Crypto Exchange Platform With Instant Swaps

Digital Assets Lender, Nexo, Rolls Out Crypto Exchange Platform With Instant Swaps

  • Nexo, a Cryptocurrency lending platform, announces its new exchange service that provides 75+ cryptocurrency trading pairs on its mobile application. The exchange comes with a “Smart Routing” system to minimize slippage cases and guarantee the best price swaps.

In an announcement this Monday, leading regulated digital assets lender Nexo launched its in-built Nexo exchange service, offering a broader suite of financial tools to its users. The new swap feature offers users over 75+ cryptocurrency and fiat pairs and supports 17 cryptocurrency assets. It aims to offer no-limit, fast, and cost-effective transfers across assets provided on the exchange.

In a statement, Nexo confirmed traders would have no limits on the number of trades made on the platform with a maximum amount of $50,000 set per trade. Additionally, the exchange will allow direct fiat deposits from bank transfers and wire transfers and allow crypto deposits and withdrawals from any other wallet or exchange.

Speaking on the capabilities that the new exchange offers in onboarding new clients, Nexo Co-founder and Managing Partner Antoni Trenchev said,

“Fast, transparent, and inexpensive transactions are the backbone of fintech, but making them easily accessible and secure in a seamless, intuitive environment is the single most important step towards mass crypto adoption.”

To prevent price fluctuations or slippage cases, Nexo exchange has integrated a “Smart Routing” system, an in-house innovation. The system connects to multiple exchanges and splits your orders according to the available prices and volumes, ensuring the order is executed at the same price as is submitted.

The statement did not mention the exchanges that will execute the trades. Still, a spokesperson from Nexo confirmed that the Smart Routing system would connect to five of the “most trusted and well-capitalized exchanges.”

The exchange is registered and ISO compliant to provide clients with an impeccable risk assessment, data protection, and state-of-the-art cybersecurity of their assets. Users’ assets in custody will be insured up to $100 million by the Lloyd’s of London.

Finally, the exchange is also building a full-suite banking platform announcing a series of product launches, including the Nexo crypto credit card. Furthermore, Nexo is also looking to expand its already broad banking licenses to strengthen its compliance with global regulators.

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Author: Lujan Odera

Crypto Lender to Pay Out $6.1 Million In Dividend To Users Who Staked Nexo Token

Crypto lending platform Nexo has announced that it would be paying out 30% of its profit, equivalent to $6.1 million, as dividends to those who staked their Nexo token. The payout would take place on August 15th as per the Press Release. The official statement from the crypto lender read:

“This payout marks a 154.32% increase on the dividend distributed in 2019 and comes against the backdrop of financial volatility and uncertainty spurred by the COVID-19 pandemic.”

Nexo is a centralized lending platform where users can lend their crypto holdings to generate interest on their staked cryptocurrency. The firm also promises to pay out 30% of its net yearly profit to those that hold Nexo’s native token. The lending works quite the opposite to that of decentralized finance where there is no need for a third-party, and users can only stake ERC-20 tokens.

The firm has made quite a profit from last year given, on August 15th, 2019, the firm only paid out $2.4 million in dividends, which has almost grown by 3X this year. The growing profits of crypto lending firms like Nexo or the tremendous rise of the Defi ecosystem suggest the bullish sentiment of the crypto space and how people have started using crypto beyond trade markets. Antoni Trenchev, a co-founder of Nexo, commented on their phenomenal performance and said:

“Our profit this year unequivocally showcases Nexo’s development and staunch resilience to what are perhaps the toughest market conditions since the 2007 economic crisis,”

The co-founder also predicted the rise of digital finance shortly and believed that the gap between the traditional finances and digital finances are already narrowing down and might become negligible as more people see the technical advantages that digital assets offer over traditional ones.

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Author: Rebecca Asseh

Crypto Lender Nexo Now Allows Retail Investors To Use PAX Gold (PAXG) As Collateral

Renowned crypto lending firm Nexo has opened up the possibility of retail investors to use PAX Gold (PAXG) as a collateral option against loans. The firm had previously launched a pilot scheme on the same but the services were only available to institutional investors only. The pilot saw a high demand for the gold-backed credit lines and the firm has decided to extend the service to retail investors.

The announcement signifies that collateralized borrowing backed by high-grade gold can be extended to everyone and not only the rich.

PAX Gold token was introduced in September last year and is entirely backed by as well as redeemable for actual gold which is currently kept in Brink’s vaults. Every token is backed by ‘fine troy ounce of London Good Delivery Gold’ that allows the user to own gold which is a safe-haven asset. Tokenization adds to the convenience of the safe-haven asset.

During the pilot phase, there was a high demand for its gold-backed credit among the institutional customers such that the firm had to invest an extra $5 million in PAXG to satisfy the investors demand.

The expanded scheme that will rope in the retail customers will enable everyone to take advantage of gold-backed PAXG assets using it as collateral within the Nexo platform.

According to Nexo co-founder, gold backed PAXG is highly relevant more so during high volatility times like currently and majority of retail clients have been seeking for such a service. He explained:

“Especially in high-volatility times, as in the present, gold is sought after by many of our retail clients and we have worked towards reflecting their wishes.”

The crypto loans sector has been growing rapidly in the recent past as the majority of crypto owners or holders are looking to use their assets as collateral as opposed to liquidating them.

Nexo enjoys the backing of Michael Arrington, TechCrunch founder, and was able to raise $52.5 million during a private token sale back in 2018.

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Author: Joseph Kibe

DeFi Lender Nexo Is Now Offering Instant Credit Lines for Bitcoin Cash (BCH)

Nexo is one of the most successful crypto lenders on the market and has developed the BCH lending service in collaboration with Bitcoin.com. By making BCH-backed loans available on their platform, it enables BCH holders to take loans against their assets instead of having to sell when needing liquidity. This increases the utility of the asset and makes the BCH holding easier for the long term.

Nexo’s Interests Rates Added

The Nexo’s amazing interest rates starting at 5.9% APR plus the greatly tax-efficient service available in more than 40 fiat currencies and 200 jurisdictions have been added. This is what the Nexo’s managing partner, Antoni Trenchev, had to say about the Bitcoin.com partnership:

Providing exceptional crypto lending services worldwide is fundamental for Nexo, and an underlying part of realizing this goal is ensuring our platform supports a vast selection of cryptocurrencies. Bitcoin cash, being one of the most widely used crypto assets, significantly increases Nexo’s addressable market. Together with bitcoin cash, Nexo is thriving in its mission to grow the utility and adoption of cryptocurrencies, and bring quality banking services to all corners of the world.”

Bitcoin.com is a promoter of the BCH adoption when it comes to peer-to-peer electronic money, wanting the BCH ecosystem to develop. This is what Stefan Rust, its CEO, said about the partnership with Nexo:

“More and more companies are seeing the ever-rising activity on many fronts around BCH and wish to take part in the action. It is great to see Nexo joining the foray with such interesting and compelling new financial services.”

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Author: Oana Ularu

Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook

Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook

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.

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Author: Andrew T