Nexo.io — The World First Instant Crypto-Backed Loans.
Hello Antoni, Thank you very much for accepting our invitation. We really appreciate you are coming on this interview and taking the time to answer the questions that are the most important to our crypto community.
Before we start, could you please introduce a little bit about yourself?
My name is Antoni Trenchev and I am a firm believer in a decentralized economy. We started Nexo back in 2017 and I am one of the Managing Partners.
For anyone who hasn’t heard about Nexo yet, can you tell us just quickly what is Nexo is? What is the problem that Nexo is trying to solve? And how does Nexo solve it?
Nexo offers instant crypto-backed loans that allow you to spend cash whenever you need it without having to sell you crypto.
As with a long of things in life, it was a personal emergency that inspired me to start working on Nexo. A few years ago I needed cash and was forced to sell my crypto. It was BTC back then and I sold it for $500 — and all of us know what levels bitcoin reached afterward… I would have been much better off if I could use get an instant loan, repay it later and keep the profit from my crypto. It was right there and then that we decided to develop Nexo, to address precisely this issue.
Let me give you an example.
Let’s say you have $10,000 worth of BTC or ETH. What Nexo can do for you is provide you with a designated Wallet where you place your crypto and get an instant loan of i.e. $5,000 which you can immediately access using the free Nexo Credit Card or by withdrawing USD or EUR to your personal/business bank account.
Nexo is about spending your crypto wealth without having to sell your cryptoassets. You simply placed them in a designated Wallet and instantly start using a credit line based on the value of your cryptoassets.
What are the main pillars of Nexo that differentiate it from the competitors?
NEXO Tokens are the world’s first SEC-compliant dividend-paying asset-backed security token with utility features. NEXO Tokens are backed by the assets in the loan portfolio and you receive dividends from NEXO profits while you are hodl-ing NEXO tokens. The NEXO token also has great utility features:
– you can use NEXO tokens to make loan repayments at discount on the interest;
– you can use NEXO tokens in your loan Wallet to increase your limit, again on better terms.
The Nexo Loans are instant and automatic because we know that speed is essential when you need liquidity. And the loan terms at NEXO are standardised for everyone, so there are no back and forth negotiations between borrower and lender.
Nexo’s Crypto-backed Loans have fixed interest rates and the same Loan-to-Value for everyone and availability is instant and automatic.
NEXO is very flexible with regards to the crypto that you keep in your designated Wallet. We will be revealing more details soon.
NEXO offers a variety of options for repayment: besides fiat, you can also use crypto at market prices (even the crypto kept in your designated Wallet) to make instant repayments.
NEXO is a Swiss-based company and offers its loans worldwide.
What values are you adding to your industry value chain and which are the main obstacles to the success of your solution?
Nexo’s model as a whole does not face any particular hurdles. But the crypto space has its challenges and in general what we would expect to see is more regulation kicking in. This could be either positive or negative. Some countries, like Switzerland, are very good at giving broad enough rules so that companies that bring value to the community, can operate with a higher degree of certainty. Rules are good, but concise, unobtrusive and business-friendly ones, and we hope for that.
We believe that security tokens are the future — most tokens are security tokens anyway, pretending to be a utility token, obviously, this is unsustainable. That is why we have opted for a security token with Nexo. It is interesting to see how exchanges will adapt to the new circumstances.
We are quite bullish and believe that crypto and tokenized assets will become a multi-trillion industry that will bring immense and exciting opportunities for all of us.
What is the role of blockchain technology in Nexo?
Transparency is very important to us, so we employ blockchain technology to ensure you see precisely what happens to the assets you use your secure your loans. So the Loan Contracts are secured on the distributed ledger, which is something that the community appreciates a lot.
Can you explain how your token functions within the platform?
Nexo tokens can be used as collateral for the Instant Crypto-backed Loans on Nexo the platform or for reducing interest-rate taxes for our Loans.
Who will use that token?
Anyone can use the Nexo tokens — we will provide our Instant Crypto-backed Loans to people and companies from all over the world.
Cryptocurrency Investors: Cryptocurrency investors can receive immediate funding based on the market value of their bitcoin, Ethereum or other liquid cryptocurrencies, tokenized assets or utility tokensCrypto Miners: Covering capital expenses such as computing power needed by Crypto Miners in order to stay competitive and grow their operations, often requires liquidation of mining rewards. This can be avoided by opening an instant Crypto-backed Loan with NexoICO and Crypto Companies: Instead of directly selling the cryptocurrency raised from an ICO or generated in the course of business, crypto companies can now setup an instant Crypto-backed Loan to meet their working capital and operating expenses requirementsCryptocurrency Exchanges: Cryptocurrency exchanges and trading platforms can use Nexo’s instant Crypto-backed Loan to raise necessary funds to finance their margin lending and trading servicesHedge Funds: Hedge Funds who have invested in cryptocurrencies, ICO tokens, and other digital assets can leverage their portfolio by obtaining instant Crypto-backed Loan from Nexo and take advantage of new investment opportunitiesGamers and Virtual Reality Users: There are 2.2 billion gamers and VR users who trade in-game and VR items valued at over $50 billion. Instead of selling the items and losing the opportunity to use them in the future, they can now be used in a Loan Wallet to meet short-term liquidity needs
Why did you decide to launch an ICO and why do you need a public token sale?
We opted for giving the community and the people that will ultimately use our services that opportunity to invest in Nexo directly because this is what blockchain technology is all about.
The difference between us and the large portion of ICOs is that our product is money, we need a large amount of liquidity in order to funds the crypto-backed loans. We already have a backlog of $500 million in loan requests.
Does Nexo have the proof of concept, demo or final version?
Nexo’s Live Platform will be launched in April before hitting the exchanges.
Where do you see the value of your token in the medium to long-term and the ultimate benefit for the token holders?
Nexo does not comment on price action.
Looking forward to the future, what is Nexo’s plan after the ICO?
We are working in two directions. Making the best possible platform and providing the best possible consumer experience is very important for us, and no efforts are spared. Secondly, we are looking for ways to secure even more funds (via a different mechanism than an ICO) in order to meet the enormous demand for our product. We have made huge progress and we will be announcing some exciting news in the months to come.
Thank you very much for taking your time talking with us. We’ll be watching your project closely. And wish you all the best for the future development.
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