Miguel Leite Follow Co-founder and CEO of Coinvision. +8 years experience in tech and blockchain startups. In crypto for the tech.

Nexo Announces 6.5% Compound Interest in Euro to Compete With Traditional Finance

1 min read

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Our newest research focuses on Nexo, the biggest loan provider in the cryptocurrency market that is now offering a set of products that are truly innovative in the fintech space.

Highlights

  • Nexo is currently providing loans to more than 170,000 users and processed more than $300M in the first 7 months of operation
  • Team just announced a 6.5% free compounding interest per year on EUR, paid out daily.
  • Product design is clear and it’s very easy to request a loan or start getting compound interest

A Proven Model

Nexo started with a +50M raise in a token sale that was 11x over subscribed. By that time, many analysts considered investing in Nexo a risk that would hardly get any return due to regulatory pressure related with the fact their token was a security. This was proven wrong.

Today Nexo has a great product in terms of interface and usability and is now the biggest loan provider by market cap and already processed more than $300M in loans to more than 170,000 users.

Next Big Step: 6.5% Compound Interest

In March Nexo announced 6.5% compound interest on several stable coins (DAI, PAX, USDC, USDT and TUSD). This offering has no minimum amount requirements, users can withdraw assets at any time and compound interest is paid daily from day 1.

Now the team has just announced that this compound interest feature is now extended to Euro.

How Nexo Euro Compound Feature Works


To start using this feature users just need to create an account on Nexo platform, go through obligatory security procedures, transfer EUR and active the compound interest feature.

By using compounding, Nexo ensures that every day a larger interest amount is credited into users’ accounts, letting you enjoy secure high-yield passive income without any fees or commissions.

User funds are then secured by asset-backed portfolios of overcollateralized loans and the collateral of each loan is subject to custodial insurance of $100 million provided by a leading custodian provider.

Great product with clean usability
Product is very well designed, the interface is clear, intuitive and simple to use. it’s not a hyperbole to say this is one of the best products in the blockchain space at the moment. It works, it has product market fit and it offers working features.

Onboarding is quick as easy and funding the account takes less than 4 hours if it’s in cryptocurrency and a day if it’s in Euro, due to extra compliance measures.

Conclusion

Summing up, we see high growth potential on Nexo for the next 6 months. Loan volume and revenue are going up and the compound interest features will likely accelerate this growth, bring more upside to this project.

Disclaimer
We are stating our vision and opinions, we are not giving you financial advice and if you invest in cryptocurrencies it is your full responsibility. You are investing at your own risk. Always invest only what you can afford to lose and try to diversify your investments. Finally, do your own homework and learn about the project use case, roadmap and team.