Nexo’s First Wave of Policy Change Going Live Today

  • Despite the early announcement, the market reaction only occurred as the changes were about to go live.
  • The company is also working on additional features that could increase the demand for Nexo tokens significantly.
Nexo CEO Antoni Trenchev

Nexo CEO Antoni Trenchev. Crypto Insider

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.

Discussion
Related Coverage
Top DeFi Protocols to Watch in 2023 and More
  • Decentralized finance (DeFi) has become one of the hottest trends in the crypto world as it’s more transparent and decentralized than traditional finance.
  • Here are our top picks of DeFi projects that have a good potential growth, and some of the protocols that did not made the list, such as RING Financial.
May 15, 2023, 2:22 PM
person scanning chart data

Shutterstock

Coinbase to Stop Issuing Loans Through Borrow Program
  • The crypto exchange warned its users in an email that starting 10 May it will no longer issue new loans through its Coinbase Borrow program.
  • The service has been operating since November 2021, and allowed customers to use their Bitcoin as collateral to borrow up to $1 million in fiat from Coinbase.
Authorities Reportedly Raid Nexo’s Bulgarian Offices
  • The probe into Nexo’s activities in Bulgaria was launched several months ago, after international services detected suspicious transactions aimed at circumventing Russian sanctions.
  • Reports suggest that Nexo is also being investigated for allegedly committing major financial crimes, and participating in money laundering activities.