On January 29th, crypto lending platform Nexo announced an upcoming change in lending policy, which is set to be live later today.
The largest modifications to the terms are the requirement to stake enough Nexo tokens to cover the interest for the loan all the way until repayment in order to receive the popular 50% discount on interest, the ability to make use of the offer for only part of the repayment period and still receive a discount, proportional to the days in which their Nexo balances were sufficiently high, and the ability to use any Nexo-supported crypto or fiat currency for repayments.
Despite the fact that the planned increase in the utility of Nexo tokens was announced in January, the market only started reacting to the positive news a few days ago. Swing traders who bought Nexo tokens for speculation purposes had enough time to purchase them at their old price and wait out a price increase, which was expected based on publicly available information.
And the price increase did in fact occur – as Nexo price jumped from $0.143 per token on February 5th to upwards of $0.20 today.
Whether the price growth will continue remains to be seen. However, Nexo has been teasing the public with hints regarding additional exciting features that have the potential to increase the demand for NEXO tremendously. Higher cashback rates on the Nexo Card, improved interest rates for both lending and loan-taking and many more are apparently in the works.