19 C
New York
Tuesday, May 28, 2024

Nexo Product Manager Talks 2022 Crypto Lenders’ Crisis and Which Coin Users Seek The Most (Exclusive Interview)

Must read

2022 saw the implosion of numerous cryptocurrency lenders, perhaps none more devastating for investors than the Celsius crash. What followed was a year-long violent bear market with depressed prices and little to no actual activity within the industry.

Two years later, the landscape is entirely different. The entire market cap has more than tripled in the past several months, while BTC is closing on its all-time high against the dollar of $69,000.

During the Crypto Expo Conference in Bucharest, CryptoPotato had the opportunity to chat with Nexo’s Product Manager – Dimitar Bratovanov – and he explained what helped his company survive the lenders’ crisis, what are the latest products that the team has launched, how they work, how users can take advantage, which are the assets with the highest demand, and more.

Nexo Survived Because of Over-Collateralization

BlockFi and Celsius Network are perhaps the most well-known names from the crypto lenders’ space that went under during the 2022 market crash. Nexo, in contrast, was among the few representatives of that niche that survived, even though the firm had its own political issues with the Bulgarian government.

While speaking on the matter, Bratovanov said the main reason why Nexo survived and others didn’t was his company’s fundamentals. More specifically, he believes that over-collateralization – meaning that all loans his firm provides are backed by more assets than their actual value – is what made the difference.

Additionally, he asserted that Nexo’s risk management policy is conservative, which allowed the firm to stay afloat. Last but not least, the company strives to receive licenses and be aligned with regulators to avert similar crashes from happening.

Demand Is Back

While he admitted that user interaction had declined during the bear market, Bratovanov noted that demand for his company’s products is returning now, given the recent price increases in the crypto market. He added that users are more inclined to take loans while retaining possession of their crypto holdings.

One of the products launched by Nexo all the way back in 2018 for this returning demand is called Crypto Credit Lines. Essentially, it allows customers to put their cryptocurrencies as collateral and receive fiat or stablecoins in return. The process is instant once the users are approved and verified. The interest rates vary depending on the clients’ loyalty levels, which are monitored daily.

The lender is also focusing on its Nexo Card, which enables customers to use it in two different modes – as a debit or credit card. They can change it with a single swap and thus take advantage of the features of two cards while only having one.

If it’s used in debit card mode, users spend their actual crypto holdings. When they are not paying with it, they get interest on their assets. In contrast, they can receive up to 2% cashback when they utilize it as a credit card and do not spend their crypto.

Although some of the company’s products offer over 30 different assets, including fiat, crypto, and stablecoins, Bratovanov asserted that Bitcoin is the one with the highest demand in terms of asset holdings.

Nevertheless, many users have begun diversifying with some of the other available assets on the platform.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

More articles

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 comments
Inline Feedbacks
View all comments

Latest News