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What is NEXO and How it Grants Loans in Exchange for Crypto
  • A beginners guide to NEXO’s historical price and working.
  • How can you get loans  with a 2% added bonus?
  • Price is in deep consolidation; will it break support or resistance any soon?

Nexo is a fintech application developed by the European company Credissimo, operating on the blockchain. It offers online loans backed by cryptocurrencies in exchange for USD, EUR, BTC, ETH, and NEXO coins.

Credissimo, the parent company of Nexo, was established back in 2007. Over time, they expanded their services and in 2013 introduced a financing and direct utility bills payment solution for the E-commerce sector. To further enhance accessibility, they launched a user mobile application in the same year, resulting in a substantial increase in loan applications, exceeding a million.

In 2016, Credissimo ventured into the cryptocurrency space, and in 2018, they officially launched the platform known as Nexo, which has since gained prominence in the blockchain-based fintech industry.

How does NEXO operate?

The operations of nexo are simple as users deposit the cryptocurrency coins which are supported by the platform into a nexo wallet, and in exchange they are given cash loans in terms of US dollars or Euros. All of the details are stored in an ethereum smart contract.

Nexo works by providing straightforward plans to investors to get interest from their coin deposits, The profitability of the platform derives from the high interests that are placed on the digital assets which the lender acquires.

The returns and borrowing rates

The returns and the borrowing rates depend upon the loyalty level of the person acquiring the loan and also on the chosen cryptocurrency. A good loyalty level will get better returns and low borrowing rates and vice versa.

Earn in kind protocol

The NEXO platform uses the ‘earn in kind’ protocol, which is a feature that allows users to get interest in the form of its own native token and get an added 2% bonus

NEXO’s historical pricing and technical insights

What is NEXO and How it Grants Loans in Exchange for Crypto

About a year ago, during the initial days of August, NEXO’s price experienced a sudden 23% bullish surge, driving it from $0.75 to $1.00. Following this, the price consolidated within the range of $1.05 to $0.80.

From November 2022, the price began to decline, attempting a recovery in January 2023, but the bears dominated, causing the bulls to retreat. Since then, the price has not come close to the $0.80 average seen in June 2022.

Currently, the price is in a deep neutral consolidation, with both bears and bulls standing their ground. Notably, a support level is evident at $0.579, with a stronger and more established support at $0.548. On the resistance side, there is one at $0.700 and another at $0.766.

The RSI indicates strength at the middle point of 49-51, signifying consolidation. However, since the price is below the 100-day Moving Average (DMA), the current situation reflects a downtrend. The neutrality will persist until either of the previously mentioned support levels experiences a breakout, aligning with the 50 DMA.

Conclusion 

Nexo, launched in 2018, is a blockchain-based fintech application created by the European company Credissimo. It offers online loans backed by cryptocurrencies, allowing users to borrow in USD, EUR, BTC, ETH, and NEXO coins.

The platform also provides straightforward plans to investors for earning interest from their coin deposits. Nexo’s profitability is derived from the high interests earned on the digital assets acquired by the lenders.

Over the past year, the price has been on a declining trend since November 2022 and has yet to show signs of recovery. The current market situation indicates a deep consolidation, with support and resistance levels to be monitored for potential breakout signals.

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