Nexo cryptocurrency is the official token of the Nexo.io project. Nexo positions itself as a full-fledged crypto-banking that allows people to make money on cryptocurrency without exchanging it for fiat.
Unlike decentralized apps, Nexo has owners. And at the same time, licenses from regulators. In addition, Nexo regularly reinsures its stored cryptoassets. The insurance now covers $ 375 million. They will be used to compensate for the loss of customers if the company’s accounts are hacked or destroyed as a result of a technical error. Insurance is growing – back in December, the company only covered $ 100 million.
On Nexo, users can borrow cryptocurrency or deposit it at interest. The offered rates are very competitive – you can place a deposit in euros or dollars at 10% with a net deposit. If you do this using the NEXO token, then the exchange will accrue 12% per annum.
This also applies to deposits in cryptocurrency. You can invest in BTC and ETH at 6% per annum. But if you make a deposit through the intermediary token of the exchange, then the percentage rises to 8%. In stablecoins, the situation is similar – 10% in net deposit, 12% in NEXO.
Thus, the administration of the site motivates customers to keep the token and not sell it. Due to this, the volatility of NEXO is relatively low. The holders are interested in further holding, as they increase their own profits. In addition, the prospects for the token itself as a separate asset are also good.
The company is growing rapidly and offers a level of financial protection that is not available to users of De-Fi projects. Yes, the profitability is lower here. But it is higher than that of classic dollar instruments, while being protected at the level of an average bank. Among other things, Nexo is one of the few companies that is ready to provide Visa and Mastercard for citizens of Russia and the CIS. Users can spend their crypto balance in stores or cash it out using regular ATMs.
NEXO cryptocurrency forecast
For a long time NEXO kept its capitalization in the region of 20-40 million dollars. In the turbulent years for the crypto market in 2018 – 2019, the company continued to gain momentum. As the development of staking technologies, Nexo implemented them in itself, which bore fruit. From October 2020 to April 2021, the capitalization of the NEXO token increased from $ 70 million to $ 2 billion.
Like most near-exchange services, Nexo wins even on the fall of Bitcoin, as the volume of transactions remains. Therefore, the prospects for the token are not bad. In the current market conditions, the price of NEXO may go up to 5.5 – 8 USD per coin.
A similar project, Crypto.com, which launched the CRO token, was able to raise a capitalization of $ 4.5 billion for it. At the same time, NEXO, unlike CRO, is limited in emission. Considering the growth rate of the capitalization of the NEXO token, it is quite possible to reach the mark of 3.5 – 4 billion “caps” in the next couple of months, which will give a price for the coin of about 6 – 6.5 USD.