Written by Zach Quezada

VP of Business Development — ICOAlert
March 22 2018

Nexo (NEXO) — ICO Alert Report

Nexo (NEXO) — ICO Alert Report

What is Nexo?

Nexo brings The World’s First Instant Crypto-backed Loans. We want to give people the opportunity to enjoy their crypto wealth without having to sell their crypto assets. Nexo’s clients simply placed their assets, such as Bitcoin and Ether, in an Overdraft Wallet and get cash instantly from Nexo.
— Antoni Trenchev | Managing Partner

ICO Alert Quick Facts

  1. Instant cryptocurrency-backed loans platform
  2. $.10 = 1 NEXO token
  3. March 6, 2018 — April 1, 2018
  4. 525,000,000 total available / 1,000,000,000 total supply
  5. 50,000+ Telegram group

ICO UPDATE: For more information visit Nexo Token Sale Update

Q&A with Antoni Trenchev | Managing Partner

ICO Alert: For those who are not familiar with Nexo, can you explain what it is and what the team aims to accomplish?

Trenchev: Nexo brings The World’s First Instant Crypto-backed Loans. We want to give people the opportunity to enjoy their crypto wealth without having to sell their crypto assets. Nexo’s clients simply placed their assets, such as Bitcoin and Ether, in a Loan Wallet and get cash instantly from Nexo. They can immediately start spending it via the free Nexo Credit card or same/next day bank transfer. The extended loan is based on the value of your crypto assets. The best part is that there are no credit checks and all takes just a few clicks to finalize.

ICO Alert: How does the Nexo token (NEXO) function within the platform and why is it needed?

Trenchev: NEXO Tokens are the world’s first SEC-compliant dividend-paying asset-backed security tokens with utility features. They are backed by the assets in the loan portfolio and you receive dividends from Nexo’s net profits while you are hodl-ing NEXO tokens. The NEXO tokens also have 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 Loan Limit, again at discount on the interest.

ICO Alert: Can you outline the relationship between the Nexo platform and Credissimo?

Trenchev: Nexo is powered by Credissimo — A Leading FinTech Group serving millions of people across Europe for over 10 years. The team behind Nexo has a proven track record building an international FinTech operation and more than 10 years of know-how building instant online lending solutions. Most recently we have reached the Top 10 at the 2017 European FinTech Awards. Innovation is at the forefront of all of the team’s efforts and it is not surprising that we were able to launch the world’s first personal loans application chatbot for Facebook Messenger. Yet another testimony to the team’s achievements are the two Forbes awards for “Financial Sector Innovations” and “Quality of Services”; you can read more here:
(https://www.nasdaq.com/press-release/credissimo-wins-twice-at-forbes-business-awards-2017-20180204-00002).

ICO Alert: You advertise that Nexo is an “SEC-compliant dividend token,” can you give us more insight into this claim? Up to this point we have seen ICOs mostly take the utility token approach, why did you choose the dividend token path instead?

Trenchev: Instead of attracting capital from legacy financing sources that are only now beginning to appreciate the potential of blockchain technologies, Nexo is opting for another solution. The company aims to increase awareness and gather generic support from the crypto community by letting its members participate directly and transparently in the Token Sale. A well-executed Token Sale provides essential funding that allows Nexo to extend instant Crypto-backed Loans and meet the overwhelming demand from the blockchain community. The benefit of global outreach and inclusivity of all people and potential investors to participate and become longstanding Nexo supporters on a global scale is the very essence of the efforts of the blockchain technological innovation. Furthermore, the NEXO tokens are going to be used in multiple Airdrop campaigns that will attract and retain loyal customers and supporters and represent a great incentive for them to explore the possibilities of the Nexo platform at discounted rates. The Token Sale is an invigorating and efficient way to raise funds, as it prompts the community members to reinvest into the sustainable growth of useful projects. To further reward NEXO token holders, each NEXO token bears dividend-paying features.
Being SEC compliant means that we accept US investors only if they are “accredited investors”, according to Regulation D of Section 506(c). NEXO Tokens are compliant security tokens we do not pretend to issue utility tokens in order to avoid SEC regulation. We follow SEC’s rules and you can see our filings on sec.gov website under “Nexo Capital Inc.”

ICO Alert: Your initial plan is to offer overdrafts in USD backed by BTC and ETH. Is there a plan in place to potentially have additional cryptocurrencies added as a backing for overdrafts?

Trenchev: In addition to USD-based loans, we are going to offer EUR and JPY later this year, while the Nexo Wallet will also accept additional Altcoins and Tokenized Assets from Q3 2018 as backing for the loans. In fact, we are just about to announce a partnership with the largest marketplace for Gaming Tokens. As a general rule of thumb — if the asset type is tokenized and has liquidity, sooner rather than later, we hope to be able to extend loan against it.

ICO Alert: We have promoted multiple payment and lending platforms over the past year, how does Nexo differentiate itself from this crowded market?

Trenchev: The Nexo Crypto-backed Loans are instant and automatic because we appreciate that speed is essential when the client need liquidity. Тhe loans terms at Nexo are standardised for everyone, so unlike P2P platforms, there are no back and forth negotiations between borrower and lender.
Nexo is very flexible with regards to the crypto that you keep in your Loan Wallet. We will be revealing more details soon. Furthermore, Nexo offers a variety of options: besides fiat, you can also use crypto at market prices (even the crypto kept in your Loan Wallet) to make instant repayments. There are no geographic restrictions at Nexo, you can be anywhere in the world and still receive a Crypto-backed Loan from us.
Nexo’s Crypto-backed Loans have fixed interest rates and the same Loan-to-Value for everyone and availability is instant and automatic. P2P platforms take а commission in the interest of each loan. Nexo’s income is the interest rate on the loan, just like a bank.
At Nexo the process is extremely flexible, cost-efficient and simple — no monthly, annual or other hidden fees are ever charged. No minimum loan repayment is required if the outstanding loan balance is within the available Loan limit.

ICO Alert: Other than the common cryptocurrency investor, what audiences will use and benefit from the Nexo token and platform?

Trenchev:

  • 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 tokens
  • Crypto 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 Nexo
  • ICO and Crypto Companies: Instead of directly selling the cryptocurrency raised from an ICO or generated in the course of business, crypto companies can now set up an instant Crypto-backed Loan to meet their working capital and operating expenses requirements
  • Cryptocurrency 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 services
  • Hedge 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 opportunities
  • Gamers 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

ICO Alert: Oracle is an interesting component within the Nexo ecosystem, can you describe what it is, and how it functions on the platform?

Trenchev: The Nexo Oracle is an automated independent system that maintains Nexo’s key operating functions.
Loan-to-Value is dynamically determined by the Nexo Oracle algorithms, depending on the current and historical volatility and market liquidity of the asset.
  • Development of loan contracts: When a Crypto-backed Loan is set up, the Nexo Oracle is responsible for the automatic disbursement of cash, asset maintenance, notifications, and overall management.
  • Development of real-time data aggregation: The Nexo Oracle performs real-time asset valuation based on data from multiple exchanges at any given point in time. The Nexo Oracle maintains live data aggregation from at least 6 independent sources (exchanges), which minimizes overall risk for both Nexo and the client. The Nexo Oracle also detects live changes in asset value and recalculates Loan limits. In the case of asset price appreciation, the Loan limit is automatically and instantly increased.
  • Development of repayment analytics module: The Nexo Oracle automatically records repayments and further accounts for all transactions made by clients. Interest repayments, outstanding balances, and up-to-date loan limits are automatically maintained at all times by the system.
  • Development of automated notifications: All loan maintenance actions are automatically executed by the Nexo Oracle without any manual intervention — change in asset value and loan limit; cash inflows/outflows; maintenance and rebalancing warnings are issued in case of reached minimum crypto asset limits; individual account balances are updated with repayments; administrative notifications are sent to the client with all relevant information.
  • Development of modeling and algorithms: In order to secure the proper functioning of the system, Nexo integrates big data analyses, self-regulating algorithms, and prediction modelling in the Nexo Oracle. That way, Nexo can guarantee that the information received from multiple external data sources is used for proper on-time business decision-making.

ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for 2018?

Trenchev: The roadmap can be seen in our Whitepaper.

In short, until the end of 2018 our plan is:

April:

  • Launch Instant Crypto-backed Loans in USD Secured by BTC and ETH
  • Listing NEXO Token On Exchanges

May:

  • Start M&A Process of Acquiring an FDIC-insured Banking Institution

June:

  • EUR Currency Support

July:

  • Launch Nexo Credit Card

Q3:

  • Additional Altcoins / Tokenized Assets Support
  • JPY Support
  • KYC/AML Automation
  • Launch Nexo Mobile Wallet
  • Launch Affiliate Program & Tell a Friend Program

Q4:

  • Increase Maximum Loan Limits
  • Second Nexo Airdrop Campaign

And more:

Q1 2019:

  • Finalize Acquisition of the FDIC-insured Banking Institution
  • Introduce Deposit Accounts

Q2 2019:

  • Enterprise API
  • Installment Loans
  • Further Increase the Maximum Loan Limits

ICO Alert: As a non-Nexo question, we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?

Trenchev: Predictions are notoriously hard to get right, especially those concerning the future. Kidding aside, the whole crypto sphere is quite dynamic. We would expect more regulation to kick in, which could be a positive or a negative development. 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 outright with Nexo. It is interesting to see how exchanges will adapt to the new circumstances.
Generally, 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.

Pre-ICO Information
The Pre-ICO began on March 6, 2018 and will end on April 1, 2018. There are a total of 525,000,000 Nexo tokens (NEXO) available during the entire ICO period, representing 52.5% of the total NEXO supply. A hard cap of $52,500,000 is set for the entire ICO period.

$.10 = 1 NEXO token

Current accepted currencies for Nexo include ETH and BTC

ICO Information
The main ICO period of the Nexo sale will not take place due to increased institutional support and whitelist oversubscription.

Token Information
There are a total 1,000,000,000 NEXO tokens being created, with 525,000,000 available during the entire ICO.

Contributors will have their tokens distributed shortly after the end of the ICO. Visit the Nexo website for more information and the contribution address.

Restricted Areas
Areas restricted from investing in Nexo include China

Allocation

Use of ICO Proceeds

Roadmap

Team

Social Media

View the Nexo website here.

View the only comprehensive list of active and upcoming Initial Coin Offerings (ICOs) here.

References

  1. Nexo Website, Nexo (2018)
    https://nexo.io/
  2. Nexo Whitepaper, Nexo (2018)

Topics: Blockchain, ICO, Finance, Crypto, Fintech