Nexo, the world’s first instant crypto overdrafts portal is Michael Arrington’s latest blockchain pick. It is a “cool product, an instant credit line on your crypto assets,” tweeted the TechCrunch founder on March 1st.
— Michael Arrington (@arrington) February 28, 2018
From the Credissimo Team
The concept comes from the Credissimo team, a leading European FinTech Group founded in 2007, which is disrupting the inefficient lending market. Credissimo has been offering convenient online consumer loan products – made possible through the adoption of the latest technologies – while generating a 35% net interest margin. After ten years of FinTech success, they continue to be at the forefront of the technological world with their latest offering Nexo, powering the world’s first instant crypto overdrafts.
Nexo provides an instant overdraft facility on your crypto assets, thereby preserving their upside potential. For the community at large, it aims to unlock the value of digital assets that currently remains idle. By placing their digital assets in an Overdraft Wallet, Nexo clients can get an instant overdraft in either fiat currency (EUR, USD, etc.) or cryptocurrency.
Targeting a $5 Trillion Market
The size of the Repo market for non-digital assets is $6.8+ trillion. Nexo is seeking to open and build a similar market for digital assets; a market that is estimated to reach about $5 trillion in size, including $4 trillion in tokenized assets (and $1 trillion in cryptocurrencies) by 2025. Clients at the portal will span from cryptocurrency investors, crypto miners, hedge funds, crypto exchanges to ICOs and VR users; in short, anybody with a digital asset. Clients can repay their overdrafts using fiat currencies or NEXO Tokens (eligible for a discount on the interest).
The Business Model
The client transfers crypto assets to his Overdraft Wallet according to the Overdraft Contract, a pre-written logic string based on computer code stored and replicated on the blockchain. The Nexo Oracle then operates autonomously and constantly checks various data points with predefined conditions written on the overdraft contract. The value of the client’s crypto assets is determined in real-time on multiple exchanges in order to minimize risk for both parties. Once the conditions are satisfied, the code triggers an automated action. Upon each repayment, the Nexo Oracle self-executes and automatically increases the overdraft limits on the account.
Team and Advisors
The project execution team includes Kosta Kantchev, Georgi Shulev, and Antoni Trenchev as managing partners; and Vasil Petrov as the CTO; – for more, take a look at the website.
The Nexo team of advisors includes:
- Michael Arrington, founder of TechCrunch/Arrington XRP Capital.
- Trevor Koverko, founder of Polymath, a platform that enables the creation, issuance, and trading of financial instruments on the blockchain.
- Ugo Bechis, leading payments and cards expert.