Is Nexo A Good Investment?

Introduction

Nexo (NEXO) came up with the idea of the world's first instant crypto-backed loans, resolving an important inefficiency in the crypto world. Nexo's innovative model brings a valuable addition to the crypto community, i.e., retaining 100% ownership of their digital assets while having immediate access to cash.

Nexo is one of the world's biggest lending institutions in the digital finance industry. Since 2018, with the power of blockchain technology, Nexo has tried to help people make the best out of their crypto assets, shaping a new, better financial system. Nexo committed itself to solve inefficiencies in the lending markets by creating innovative and sustainable solutions. By using blockchain technology, Nexo aims to develop a new digital financial system. Nexo's values are mainly rooted in efficiency, transparency, and inclusivity. They try to reflect these values in their fully automated products, transparent processes, and their efforts to develop a global service that makes wealth creation opportunities available to everyone.

How Does Nexo Work?

There are four steps that a client needs to take to use Nexo.

• At first, the client is required to transfer crypto assets to the Nexo wallet. The relevant blockchain confirmations for the crypto asset are required. Once the confirmations are received, the Nexo Oracle automatically calculates the loan limits and instantly sets up the loan.
• In the second stage, the client receives an instant loan in USD or EURO. The Loan limit is available by bank transfer or the Nexo Credit Card, free of charge. The clients can choose the most suitable manner to use their cash and the type of currencies they would like to receive the loan. The loan limit is calculated based on the market value of the crypto assets in the Nexo Wallet.
• The third stage is repaying the loan by the client. There are multiple ways that clients can repay their loans. They can repay via bank transfer, fiat, or cryptocurrency. Choosing Nexo token to repay the loan leads to a special discount on the interest rates. A third option is to repay by the partial sale of the crypto assets (BTC, ETH, etc.) in the client's Nexo Wallet. Moreover, Nexo has no monthly minimum limit repayments, as long as the outstanding balance is within the available loan limit. Once repayment is received, Nexo Oracle records the transaction on the blockchain and instantly updates the loan limits.

Finally, If the crypto assets in the wallet meet the required limits of the outstanding loan balance, clients can withdraw part or all exceeding amounts at any given time. Once the loan is fully repaid, clients can withdraw all of the crypto assets in the wallet.

Financial Analysis:

Nexo provided its investors with a 959% Return On Investment (ROI) over the last year. Although the number seems interesting to any investor, it is lower than its similar project's ROI (1,152%). Moreover, Nexo underperformed in terms of ROI compared to the market's average ROI, which grew 3,143% over the last year. You can have access to our full report and follow Nexo's ROI on our website.

With approximately $774 million, Nexo is ranked 110 among all crypto projects in the market in terms of market capitalization. From May 3, 2021, its rank followed a decreasing trend, starting from the rank of 67. There was a sharp drop in Nexo's price between May 15 and May 24, 2021, from $3,93 to $1.52. After that time, the price stayed relatively constant, leading to $1.39 on September 29. Moreover, Nexo's liquidity score is 37% less than the market's average score. This means that you would probably face some difficulties selling Nexo if the market is falling.

Gaining public attention could potentially play a critical role in the success of any project. Our data show that Nexo's Twitter account saw an increase of 21% in followers over the last five months. Also, its Reddit account subscribers and Telegram channel users rose during the same period, with 39% and 13%, respectively. You can find our full report here. 

is Nexo the best cryptocurrency to invest in?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.