One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll take a look at Nexo, the world’s first instant crypto-backed loans. It is one of the companies within the blockchain industry that’s actively taking on the traditional banking system. Where nowadays most banks are offering negative interest in order to cover up for the current economic state, Nexo is offering 8% interest on a yearly basis. In combination with all this, Nexo token is the functioning part of a dividend program paying out millions to the token holders. Let’s see how the token has been performing up till today and where we are heading in the upcoming years.
What is Nexo (NEXO)
To understand Nexo correctly, you should know that the project was created by an overseeing company called ‘Credissimo’. The company goes back all the way to 2007, back to when no one has ever heard of such a thing called Cryptocurrency. Ever since the company was introduced to the market, the service of offering near-instant loans was a rare thing. It had not been done before the way Credissimo was doing it.
Not so surprising, the company had over 100,000 loan applications by the beginning of 2012. After gradually expanding their business into more and more countries across Europe and now even in Colombia and South America, Nexo decided to scale up even more. From offering their services in the real world, they had decided it was time to serve the entire planet by entering the cryptocurrency market. Thus, Nexo was born.
The beauty of the introduction of the Nexo project and its native token is the fact that it sheds a different light on the ICOs we’ve seen so far. Most of these companies are new startups that have yet to prove themselves and to come up with a decent product as most of them are nothing but a promising idea. Coming from a company that’s been around for more than 10 years, the team behind Nexo had already earned their stripes and gained the experience necessary to penetrate the market thoroughly. The demand for instant-loans within the industry was spotted and acted upon accordingly.
Nowadays, the company offers a couple services. First of all, you can deposit your funds in collateral, in a safe manner protected by Bitgo, to then receive a credit line instantly. No questions asked, no background checks, none of that. You do not need to sell your precious cryptocurrency, yet you’re able to enjoy the benefits of having the cash to spend. Another service is earning interest with Nexo.
Simply depositing your funds and storing them with Nexo opens up the possibility of earning you up to 8% on your stored funds. That’s a nice way of holding, right? All of the services above are combined in the Nexo Card, a MasterCard that’s available to order through the Nexo mobile application. It allows you to spend all across the globe in the local currency with no fees and cashback with every single purchase you make. Sounds good.
Nexo (NEXO) Price Prediction 2018
The idea for Nexo has probably been flowing around the Credissimo office for quite some time. Back in 2016, they had been one of the first companies to handle Bitcoin as the collateral for loans within their company, thus the team being introduced to the cryptocurrency industry. When we skip ahead two years to 2018, the Nexo ICO was held. Being one of the first ICO’s after the whole moon-cycle, it was not as guaranteed to instantly receive millions of dollars by investors. Nevertheless, Nexo did great.
They successfully raised 52 million dollars with a token sale that was generously oversubscribed. One of the main incentives for people to purchase and then hold the Nexo token is the dividends that are paid out. 30% of the company’s profits are paid out to all token holders. These dividends are based on simply holding but also based on the length of holding your tokens, loyalty brings more rewards.
2018 has been a year for Nexo that allowed them to prove themselves and earn their stripes in the cryptocurrency industry. Straight after their ICO, the token price went up all the way to 0.40 USD, whereas the tokens were sold for 0.10 cents apiece during the ICO. Shortly after though, price plummeted beneath the ICO price gearing up towards a small burst in October 2018 to then move to a more downward spiral.
Nowadays, the token is extremely close to the ICO price of 10 cents. Many speculators called Nexo to reach the ‘magical’ 1 dollar border in the early days with a circulating supply of 500 million tokens. That never became a reality, but that might be a different story in the future.
Nexo (NEXO) Price Prediction 2020
With Nexo having a year to prove themselves and showing what they’re worth, they have managed to come up with some strong statistics to back up their claims;
- $700 Million Processed by 20,000 Nexo users
- 250+ Jurisdictions and 45+ backed fiat currencies
- $1+ Billion in Instant Crypto Loan Requests
- 100,000 followers on all Social Medias combined
The most impressing one here is the 1 Billion plus in loan requests, that’s way more than the current value of all Nexo tokens combined and way more than most market caps of the projects in their range.
That’s Nexo’s way of being smart by offering a wide variety of currencies in combination with their own native token that gains value with every addition of a new currency. The thing is, the bigger the profits are for Nexo, the more dividends are paid out to all the token holders.
The hardest part is keeping up with the competition. After doing just a little digging, tons of loaning platforms are popping up within the industry that are all aiming to receive a share of the market. Where there are others, more decentralized, alternatives, Nexo is straight forward about being a centralized company. In their whitepaper they even state; “The decentralization of lending brings significant costs and slows down the whole process, ultimately resulting in deteriorating user experience”.
By this, it goes against the terms of what cryptocurrency should stand for, a decentralized, cut-out-the-middleman type of stance towards the more traditional world. Nexo saw it as an opportunity to benefit from these less user-friendly alternatives and offer a more centralized, but user-friendly way to utilize the loaning experience. In terms of price, it’s hard to tell where we’re heading next year.
With over half of the tokens that are yet to be released, there’s more inflation bound to happen, yet it’s unclear to say when this will happen. Speculating on the long-term value for Nexo could be easier than simply looking one year ahead.
Nexo (NEXO) Price Prediction 2021
When we see the growth that Credissimo and Nexo have gone through in just a few years after their start, it’s the future looks promising. Their track record is impressive and by that, there are tons of connections in the real world to lay some important partnerships for Nexo.
In reality, most of the governments and traditional companies will not go in business with the dodgy seeming decentralized parties that they cannot control. They would rather choose a more centralized party that can explain every single thing that’s occurring to eventually make it behave their way.
That’s where the controversy comes in as most people in the industry do not like centralized parties, yet whenever a project forms a partnership with an established centralized party, it’s all smiles and balloons. Thus it’s hard to tell what a decent partnership will do with Nexo. Prior to speculating more on the potential outcome of the upcoming years, let’s look at the current numbers.
Market Cap: $53,019,269
Circulating supply: 560.000.011 NEXO
Total Supply: 1,000,000,000 NEXO
When seeing these numbers, there’s obviously a ton of tokens that are yet to be released. The vesting schedule by Nexo itself consists out of partly promotional tokens, a piece for development and part of it for the team itself. An assumption that can be made here is that these locked tokens will not be released at the current token price.
In comparison to the price at which the tokens were sold during the ICO we currently have: 0.94x in USD value, 1.99x in ETH value and 0.77x in BTC value. These numbers show that the price is where they initially started, even a little under that. That being said, there’s plenty of room to grow. Nexo itself will be incentivized to have a higher token value, then, later on, have the ability to cash out a higher amount for their locked tokens.
The total supply is capped at 1 billion tokens, to see a centralized party reach a 1 billion market cap, is not something extraordinary. In fact, this could just be true considering Ripple to be one of the most centralized parties out there sitting in the top 5 projects. If 1 billion is reached, 1 USD per Nexo could just be a reality.
Nexo (NEXO) Price Prediction 2025
Let’s take a look at the distant future for Nexo. This would mark their business to be running for nearly 2 decades, a lot can happen in two decades. As a nice way of comparing this growth to other tech-sectors, we’ve taken some historical data and shown the outcome of this in terms of price development.
- If Nexo has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $0.4335
- If Nexo has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $11.16
- If Nexo has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $0.4120
When we look at these numbers, smiles could appear on the faces of investors. The thing that most of these companies/sectors have in common though, they are used every single day. Loans are not taken out every single day by the same person, yet the same person can google multiple things a day, using the internet, while scrolling through Facebook on their mobile phones.
Still, there are tons of loans that are taken out every single day by different people. Whenever Nexo manages to take a part of this trillion-dollar industry, it’s safe to say this company is up for the long run. There is plenty of market share to gain for both the cryptocurrency industry and the loaning sector.
The moment Nexo can make this into reality and grab a substantial part of this market cap, we could just see Nexo reaching into billions in cap, making the Nexo token value rise well beyond $1 dollar.
Originally published at https://changenow.io on October 29, 2019.