Thanks all for participating in our Nexo AMA. We really appreciate all your support. There were really good and thoughtful questions that were asked. For those who missed our AMA, this blog post is for you.
Mayank – Hello @Petar_Marinov @sasserry welcome to CryptoNationIN 🥳 Glad to have you with CryptoNationIN today 😃
Thea – Glad to be here, thank you so much for having us! 😊
Petar – Hi everyone. My name is Peter and it is great to be here with you 🙂
Mayank – Great! Before we start, could you please give a brief introduction about yourself.
Thea – My name is Thea and I have been a Client Service manager at Nexo for almost 2 years now. I am very excited to be doing this AMA with you today and to share more information about our project along with Petar!
Petar – My position in the company is the same as Thea’s – a Client Service manager. I joined Nexo in early 2019 and it has been a truly exciting journey thus far.
Mayank – Also please tell our community about the Nexo.
Petar – Nexo is the pioneer of crypto-lending and has been constantly expanding its suite of services ever since in order to meet the tremendous expectations of our community.
Mayank – Great!
Q1. Do you offer any kind of protection for the crypto assets deposited with you? What kind of security features does your platform offer?
Petar – Thank you for this question. I will take this one.
I would like to begin by pointing out that the security of our clients’ assets is of great importance to us. That is why Nexo offers top tier insurance combined with military-grade security. The custodian we use is BitGo and we will also be onboarding more custodians in the future. We also partner with multiple exchanges across the globe. Overall, we are planning to further increase the security of our platform and an announcement in this regard will be made soon.
Q2. What important milestones does NexoFinance aim to achieve by the end of this year and in the future? How will it help you and how will NexoFinance be successful in 2021 and beyond?
Petar – I believe Thea can address this one.
Thea – I certainly can and will, thank you Petar.
We have several projects in the works that we are really excited about. Firstly, both our Nexo Card and our Exchange functionality are currently in the final stages of development and are being beta tested by our clients already. We anticipate official announcements to be made shortly and for the products to be fully unveiled for our entire community. We are always working towards onboarding additional custodians and partners to our project to further improve our services for the better. These and many more exciting news are to be expected in the near future, so make sure you stay tuned! We cannot wait to share them with you!
Q3. Thanks for deciding to do an AMA ! I see the community has been waiting on it 🙂
As its a bit of a controversial topic I’d be glad to hear some info on how you are regulated. Lots of FUDing around so it would be nice to clear things up a bit!
Petar – ok, that would be me.
I would like to assure you that Nexo is a fully regulated company. Our experienced Legal team is constantly monitoring the applicable regulations and any changes made to them to ensure that we are compliant everywhere we provide our services.
Q4. Sup guys! I saw here and there that you’ve liquidated some people and they are not happy about it. The community have provided an explanation, but I think we should hear some answers from you too. Care to shed some light on why you did it?
Thea – Pete, you want to start this one off?
Petar – Sure Thea, thank you.
This is indeed a sensitive topic and we would like to shed more light on it. First, I would like to point out that we do not enjoy liquidating clients as this brings them great distress and there is nothing we like to see less. However, unlike some of our competitors who land on an uncollateralized basis, we do not believe in this. We believe in sustainable lending based on over-collateralization and maintaining an adequate Loan-to-Value ratio at all times is central to the concept on which our business is built. Furthermore, as a responsible and trusted lender, we cannot afford to sit idle when the collateral loses value at a rapid pace due to sudden negative market swings as this would put both our clients and our business at risk.
Thea, is there anything else you would like to add to this subject?
Thea – Thank you, your reply is quite extensive already. I would like to point out that, for the ease and comfort of our customers, our automated system is adjusted to send a minimum of three email and SMS notifications once the LTV of the loan increases over 70%, before any automatic repayments are initiated. This is done to ensure our customers will be made aware of this and will be able to take action on time and prevent such events from occurring. Of course, we still highly recommend for each client to monitor the current status of the crypto market as well as of their loan through their Nexo account, for additional security.
Q5. Hey, big fan of @NexoFinance and I have something important to ask. Have you been audited yet and if no, are you getting closer to completing an audit?
Thea – I will take this one!
This is quite the challenging venture and one we aim to tackle in the near future. I’d like to start by saying that no crypto company is currently audited. This is due to the fact that auditing companies do not currently have the expertise or capability to adequately audit crypto companies and similar projects to ours. We are glad to inform that we are working closely alongside several top auditing firms as well as independent consultants to build the model for successful auditing of crypto lenders and exchange providers, in order to aid the mass adoption of crypto everywhere!
Q6. Is Your project a Global project? Is any of the local communities restricted from contributing to the project ?
Petar – Yes, Nexo is a truly golobal company that offers its services in more than 200 jurisdictions across the globe.
Q7. Does #Nexo have a Staking and farm program to use $NEXO token?
Thea – Indeed, one of the utilities of the NEXO token is to provide you with higher interest rates for our Earn product, and lower interest rates the loans we offer. This is done by storing a specific amount of NEXO tokens in your Nexo account per our Loyalty Program (https://support.nexo.io/hc/en-us/articles/360017445559-Nexo-Loyalty-Program-Explained). You can see the exact requirements by clicking on the hyperlink.
Q8. How can users stay updated with this project? Are there channels, including local communities where users can get the latest updates??
Thea – Indeed, if you do not want to miss any important announcements, please follow us on these channels:
Telegram – https://t.me/nexofinance
Twitter – https://twitter.com/nexofinance
Facebook – https://www.facebook.com/NexoFinance/
You can also sign up for our newsletter at https://nexo.io/#footer-scroll
Q9. Most of the activities and platforms are in English. How will you reach non-English speaking local communities? Do you have any plan to conduct Ambassador Program?
Petar – We actually have local TG groups for some of the languages/countries, besides our main group – https://t.me/nexofinance and we’ll probably have more as our community is constantly expanding, reaching new shores. Furthermore, the admins are actually native speakers which will contribute to attracting more local members.
Q10. What strategies wiII your team use to educate and attract people who don’t know blockchain and cryptography?
Petar – As you may have noticed we have upped our efforts considerably over the past months to ensure that our clients are fully aware of any changes and developments concerning Nexo and the crypto space at large. We have also started issuing more educational material about Nexo’s services and the crypto-space in general. Our communications teams have targeted their efforts at crypto enthusiasts as well as any clients who may have not been in contact with crypto yet. We feel that one of the key challenges to mass crypto adoption is literacy and understanding and we take it upon ourselves to make crypto accessible to all.
Q11. 1,000,000,000 FOR tokens is a lot. What mechanisms for increasing the value are you planning to use? Perhaps a buyback or token burn system?
Thea – Indeed, we have already introduced a buyback program (https://nexo.io/blog/nexo-launches-12-million-dollar-buyback-program) for up to 12,000,000 USD. This has already resulted in a steady increase of the value of our token. We are also working on improving the utilities to the token itself as well as introducing more functionalities and products to our platform in order to further bump up the price.
Q12. I would like to have a long term investment with your project but at the moment I have doubts, how can you convince and convince me that this project is very promising?
Thea – With Nexo, you can take advantage of high intertest yields along with low interest rates on your loan. For larger customers, we have an Account Manager program initiated, so their financial needs can be individually met and accommodations provided where and however needed. In addition, we have an Over the Counter Trading desk, tailored to further be able to cater to your needs.
Q13. Tell us about your plans for 2020, what are you currently working on, and are you going to expand the list of big exchanges?
Petar – I think you have witnessed the success of Nexonomics so far. As part of Nexonomics 2.0, we plan on further expanding our suite of services. For instance, we expect to launch the hotly anticipated NEXO card that would make our Instant Credit lines all the more accessible. We are also looking to launch our own exchange service that would allow our clients to swiftly and conveniently swap their assets on our platfrom. There are definitely more exciting things to come so stay tuned!
Q14. Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?
Petar – Indeed, there are many scam projects in the crypto space. However, as a pioneer in crypto lending, Nexo has no intention to leave the space, in fact we are working to grow even more each day. One evidence of our commitment to our customers and the idea behing our project would be our 30% dividend distributions, carried out once a year. Since the first distribution in 2018, we have delivered over 9M USD in the form of dividends, to show gratitude back to our community.
Q15. While you build your project, do you take into account community feedbacks and demands?
Petar – Yes. We are actively listening to our clients. Constructive criticsm is greatly appreacited as it helps us identify the apsects of our services that can be further improved. We will surely keep working on that so we can deliver more to our community in 2021.
Q16. Partnerships are crucial for Adoption, so can you tell us what partners you have currently and future partnerships
Thea – It is true that partnering with the right projects and companies is a great way to boost a business. Among our current partners are Jumio, who aid us in the customer verification and securitisation process, as well as BitGo, who are our main crypto custodian at the moment. I am certain you will appreciate that there are confidentiality requirements to be followed with some of our partners. You can find more information on this matter from the following page (https://nexo.io/about-us).
Q17. Projects that are not traded on major exchanges remain unnoticed. What does you think about listing the token on the leading exchanges?
Petar – I completely agree with you. We are already listed on major exchanges such as Binance DEX and Huobi. Still, we will continue looking for new partnerships with other well-known crypto exchanges in order to attribute greater prominence to our native token and make it more easily obtainable.
Q18. Where did you get the inspiration for this unique project idea? And what influence will we have on the crypto industry due to the project?
Thea – The beginning of Nexo’s success story is all about a group of friends and crypto enthusiasts with a total of 35+ years of experience in traditional finance who got together and identified the challenges of capitalizing on your crypto assets while still holding onto them. They quickly came to the realization that a service that would allow you to do that was virtually non-existent and this is how Nexo’s crypto-backed instant credit lines came into being.
Thank you to Petar Marinov (Client Service Manager), Teodora Trankova ( Client Service Manager) and Community for participating in the AMA. Have a nice day.