Reading time 6
What is Nexo
Nexo is a financial technology (fintech) company that offers a range of financial services to individuals and institutions. The company was founded in 2018 and is headquartered in Switzerland.
Nexo’s main service is its instant crypto credit line, which allows users to borrow money using their cryptocurrencies as collateral. The loan is instantly issued and can be used for various purposes, such as buying more cryptocurrency or paying bills. Nexo also offers interest-earning accounts for cryptocurrencies, enabling users to earn interest on their digital assets.
In addition, Nexo provides a cryptocurrency exchange, allowing users to buy and sell various cryptocurrencies. The company also offers a crypto-backed card that can be used to make purchases in the real world using cryptocurrency.
Overall, Nexo aims to provide convenient and accessible financial services to individuals and institutions through the use of blockchain technology and cryptocurrencies.
The history of Nexo
Nexo was founded in 2018 by Antoni Trenchev, Georgi Shulev, and Kosta Kantchev. The founders had previously worked together on a number of projects in the financial and blockchain industries.
The idea for Nexo came about from the founders’ own experiences with the difficulties of accessing credit using cryptocurrencies as collateral. They recognized the potential of blockchain technology to revolutionize the financial industry and wanted to create a platform that would make it easier for people to access financial services using digital assets.
In April 2018, Nexo launched its initial coin offering (ICO), raising $52.5 million in funding. The company then began developing its platform, which launched in May 2018.
Since then, Nexo has continued to grow and expand its services. In 2019, the company launched its crypto-backed card, which allows users to make purchases in the real world using cryptocurrency. Nexo has also added support for additional cryptocurrencies and continues to expand its offerings to meet the needs of its users.
In 2021, Nexo raised an additional $375 million in funding, which the company plans to use to expand its services and reach a wider audience. Overall, Nexo has quickly become one of the leading companies in the blockchain-based financial services industry, and its growth shows no signs of slowing down.
How Nexo works
Nexo provides a range of financial services to users, including crypto credit lines, interest-earning accounts, a cryptocurrency exchange, and a crypto-backed card. Here’s a brief overview of how each of these services works:
- Crypto Credit Lines: Nexo’s main service is its instant crypto credit line. Users can deposit their cryptocurrencies (such as Bitcoin, Ethereum, or XRP) into their Nexo account and then borrow money against them. The loan is instantly issued, and users can choose to receive the funds in fiat currency or in cryptocurrency. The amount that users can borrow depends on the value of their deposited crypto assets.
- Interest-Earning Accounts: Nexo also offers interest-earning accounts for cryptocurrencies. Users can deposit their digital assets into their Nexo account and earn interest on them. The interest rates vary depending on the cryptocurrency and the amount deposited, but Nexo offers some of the highest rates in the industry.
- Cryptocurrency Exchange: Nexo has its own cryptocurrency exchange, where users can buy and sell various cryptocurrencies. The exchange supports a range of cryptocurrencies and offers competitive trading fees.
- Crypto-Backed Card: Nexo’s crypto-backed card allows users to spend their cryptocurrencies in the real world. Users can load their card with cryptocurrency and then use it to make purchases at any merchant that accepts Visa. The card automatically converts the user’s cryptocurrency into fiat currency at the time of the transaction.
Overall, Nexo aims to make it easy for people to access financial services using their cryptocurrencies. The platform is designed to be user-friendly and accessible to anyone, regardless of their level of experience with blockchain technology.
Does Nexo charge a fee for its services
Yes, Nexo charges fees for its various services. Here’s a breakdown of the fees charged by Nexo:
- Crypto Credit Lines: Nexo charges an interest rate on its crypto credit lines, which varies depending on the loan-to-value (LTV) ratio of the collateral. The LTV ratio is the ratio of the value of the collateral to the amount of the loan. The interest rate starts at 5.9% APR for loans with an LTV ratio of 50% or less and can go up to 11.9% APR for loans with an LTV ratio of 90% or more. Nexo also charges a one-time origination fee of up to 3.5% on each loan.
- Interest-Earning Accounts: Nexo does not charge any fees for its interest-earning accounts.
- Cryptocurrency Exchange: Nexo charges trading fees for its cryptocurrency exchange. The fees vary depending on the trading volume and the type of order (market or limit). The fees start at 0.1% for market orders and 0.2% for limit orders.
- Crypto-Backed Card: Nexo charges an annual fee for its crypto-backed card, which varies depending on the level of card (Basic, Premium, or Platinum). The fees range from $0 to $300 per year.
It’s important to note that the fees charged by Nexo are competitive with other companies in the blockchain-based financial services industry, and the company is transparent about its fees and charges.
