The past few years have been extremely exciting for the whole crypto industry. All very crucial lessons that we believe all crypto investors learn is that not all crypto projects are meant to be successful, even those with huge market capitalizations. These projects all have something in common. They are all building a product which revolves around a really cool theory but at the end of the day, they are either too difficult to execute or failed to address any real world important issues. By taking the aforementioned situation into account, it is refreshing and encouraging to see crypto projects which successfully bring their pedigree and experience to the blockchain industry. The project that we will be focus in this article is Nexo.
To understand how does Nexo operates, we must first understand what Nexo is. Nexo is a financial technology application designed to provide instant crypto-backed loan to users. It is backed by a large Fintech company known as Credissimo, which is an industry leading fintech group which has millions of customers all across Europe for the past 10 years. The company has given out loans worth $120 million since its establishment. Besides Credissimo, the Nexo Project has also gain quite a bit of attention in the crypto community and is now backed by some pretty influential names in the crypto community as well. Nexo works by providing a very lucrative model which allows crypto holders to first use their crypto assets as collateral and then withdraw cash. During the process, the users will still have complete access to their cryptocurrency while simultaneously have access to their immediate cash. The reasons for the demand of this type of model to be exist is that some investors do not want to convert their crypto into fiat currencies to proceed with their real world transactions. By converting their crypto into fiat currencies, they suffered from several consequences such as they have to deal with capital gains taxes and the process is not instantaneous and it consumed a lot of unnecessary time for the money to appear in your account.
To understand what Nexo really is and how it operates, we have provided the original unedited PDF of Nexo(NEXO) Whitepaper for our readers to digest the detail of it.