NEXO Summary Evaluation

The Nexo platform plans to provide cryptocurrency holders instant loan overdraft facilities against their cryptocurrency holdings. Initially, the user needs to transfer his crypto assets to his/her Nexo wallet account, where the detailed valuation of his/her crypto assets is done. A loan limit is determined using the Nexo Oracle and the loan limits are correlated with the market value of the crypto assets in the Nexo wallet. Once the loan limit is set, the crypto assets are locked as collateral using smart contracts, and the loan is immediately available to the user by bank transfer or Nexo credit card. Users have multiple ways to repay the loan including bank transfer, fiat, and cryptocurrency. The user is expected to get a discount if the repayment is made in NEXO tokens. Once the repayment is complete, the user can withdraw his/her digital assets from the Nexo wallet. Also, tokens can be withdrawn if the crypto assets in the wallet meet the required limits of the outstanding loan balance. The Company will generate its revenue through interest on the loans. However, the Company has not stated the amount of interest they will charge. As an alternative, the Company is expected to issue a Nexo Credit Card that will be free for Nexo wallet users. No minimum monthly payment will be required as long as the outstanding balance is within the credit limit.