. What is Nexo (NEXO)? Here is the Crypto Currency NEXO Token in All Details – In this article, What is Nexo (NEXO)? We will answer the question and try to present details about the project.
What is Nexo (NEXO)?
The Nexo platform and its token NEXO form the core of the Nexo blockchain-based system whose main activity is to provide instant cryptocurrency-backed loans.
Launched in April 2018, the platform aims to promote the model that makes purchasing crypto loans easier than ever, by the availability of loans in fiat currency without relying on credit score checks.
Users need to deposit supported crypto tokens into Nexo wallets and then immediately receive their cash-based credits.
The system is designed as a means to secure liquidity in an automated and flexible way with the added bonus of supporting customers’ liquidity through their digital assets. Nexo, Bitcoin, Ethereum, XRP, Cardano, Monero etc. It supports more than 20 cryptocurrencies, including popular options such as.
Payments are backed by USD, EUR, BTC, ETH and NEXO tokens. Blockchain technology provides the backbone of the transparency-focused system at the heart of Nexo, where the Nexo Oracle component is tasked with processing Ethereum-based smart contracts as well as storing data related to a particular loan. Finally, the platform’s NEXO token is an ERC-20 token that serves as interest-covered security.
Is Nexo a Legal Project?
The Nexo project has strong support in the form of Credissimo, a fintech Group with millions of customers and ten years of experience behind it. Its core activities revolve around the provision of instant online consumer loans, e-commerce financing and payment services.
The Credissimo team sought to offer functionality similar to the world of digital assets powered by modern crypto technology, thereby giving birth to the Nexo project.
Given that Credissimo operates under the oversight of several European banking and financial services authorities, the situation with Nexo should be at least a little more relaxed, given that crypto-related projects often find themselves under the scrutiny of regulatory agencies and alert the public.
What Is Nexo Trying To Achieve?
The Nexo project was born out of the ambition to solve several problems that its developers identified as the most urgent in the financial technology industry.
Nexo wants to keep digital assets from idle, especially in the era of the growing popularity of cryptos. While the process of popularizing cryptocurrencies is still underway, the first adopters of these technologies have already created significant fortune. Nexo developers want investors, businessmen, miners, and non-professionals to take advantage of this wealth by avoiding confiscating digital assets whose value may become idle over time, either due to the lack of regulations or the lack of adequate technological infrastructure.
Nexo’s instant crypto loan model attempts to solve the long-term retention problem at two levels: users can continue to hold crypto assets while securing access to “live” cash, which can be expressed in fiat currencies such as USD, JPY or EUR. Additionally, their crypto-backed loans will take advantage of being secured by the market value of digital assets linked to Nexo accounts.
The liquidation of digital assets can be a tedious and prolonged process that Nexo hopes to tackle with quickly achievable cash access. Today’s digital assets are traded on crypto exchanges, the requirements of which can vary greatly from one platform to another. Usually slow moving procedures and withdrawal limitations are sometimes not seen in line with the demands of the modern digital economy. This is exacerbated by the need to work with regular banks that convert these assets into fiat currencies and impose additional fees and procedural bottlenecks on customers. The Nexo team hopes to reduce these practices and offer global access to cash, allowing users to be more agile in seizing investment opportunities and meeting their liquidity needs on time. Also, digital asset holders do not have to pay additional transaction, withdrawal or platform fees.
As Nexo allows, retaining ownership over digital assets should give owners greater flexibility in dealing with the appraisal / amortization. Freed from the pressure to sell their digital assets for fiat currencies, owners of digital assets have the option to profit from future price changes that these assets can deliver on time. Crypto loans provided by Nexo as an alternative to sale should allow them to maintain their capital gains and do more with the wealth-generating potential of their assets. Additionally, the fact that the actual sale of digital assets does not occur, Nexo users will generally not be subject to taxes triggered under these circumstances.
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