Alejandro Arrieche
The native token of the Nexo exchange and crypto savings platform is rising 10% in the past 24 hours to $0.8615 per coin with trading volumes spiking by over 100% during the same period according to data from CoinMarketCap.
A total of $48.1 billion worth of NEXO have exchanged hands during this period as well representing roughly 10% of the project’s total market capitalization.
The NEXO token powers the Nexo ecosystem and is also used as a loyalty tool since investors are compensated for holding the token and enjoy lower interest rates and other perks when using the company’s services.
NEXO accumulates losses of 64.1% since the year started as the crypto winter has ravaged the valuation of most crypto projects. This decline sharpened after several competitors of the crypto lending platform went bust as is the case of the Celsius Network and Voyager Digital.
However, a report from Armanino, a top independent accounting firm, attested that Nexo’s total assets exceeded customers’ liabilities by over 100%. This attestation is updated by Armanino in real time as Nexo has signed up for the service to be more transparent with users and regulators about its financial condition.
According to the Internet Wayback Machine, Nexo had customer liabilities of $11.4 billion by 17 December 2021. Meanwhile, today’s attestation indicates that Nexo has $4.28 billion in customer liabilities, meaning that assets-on-platform experienced a significant decline during the crypto winter.
Nexo Incorporates FTT and HT to Its Platform
Yesterday, Nexo announced that it incorporated two new tokens to its platform. These are the native tokens of two rival exchanges – FTX (FTT) and Huobi Global (HT).
Users of Nexo will be able to exchange, pledge as collateral, and spend these tokens by using the Nexo card and they will be entitled to receive rewards for doing so. Several trading pairs will be available for both tokens on the Nexo platform as well such as BTC, ETH, USDT, USDC, and fiat pairs.
Investors could be reacting positively to the news as the incorporation of new tokens to the platform could result in higher demand for the native token of the Nexo platform.
Financial services platforms within the crypto space have been under pressure lately due to their exposure to under-collateralized loans and other risky practices that ultimately tore up their finances during the so-called crypto winter.
As a result, a handful of projects have been forced to pause all withdrawals, swaps, and transfers as the value of their assets dropped below their total liabilities – which include customers’ deposits.
Nexo has not succumbed to such a situation but investors might still be cautious about depositing money on crypto platforms as they have grown more aware of the significant risks they are exposed to in case these providers run into trouble.
This provider has obtained licenses to operate in various locations in the United States including Alabama and Arizona and they have also received a Money Service Business Integration license from the US Financial Crimes Enforcement Network (FinCEN). The platform also has licenses to operate in Canada, the Seychelles, Switzerland, and Lithuania.
Are DEXs Safer and More Profitable Than CEXs?
Nexo’s crypto savings platform is currently offering attractive annual percentage yields (APY) of 12% or higher on several stablecoins and crypto assets if users opt to receive their payments in NEXO.
Decentralized exchanges have been deemed as safer options than CEXs as they rely on algorithms and smart contracts to power their operations rather than being managed by humans.
Defi Swap is one of those alternatives. This exchange is powered by DeFi Coin (DEFC) and offers the possibility of swapping tokens and earning staking rewards with low transaction fees. Several tokens are supported by the platform going from the most traditional assets such as Bitcoin Cash (BCH) to more exotic options such as the Juventus (JUV) fan token.
Other Related Articles:
- Nexo Price Prediction: Can Vauld Acquisition Boost Valuation?
- Top Yield Farming Platforms in August 2022
- Best Crypto Loan Sites in 2022
- Nexo Assures Users of Ample Liquidity Amid Market Turmoil
DeFi Coin (DEFC) - Undervalued Project
- Listed on Bitmart, Pancakeswap
- Native Token of New DEX - defiswap.io
- Up to 75% APY Staking
- Whitepaper and DeFi Tutorials - deficoins.io
This article was written for Business 2 Community by Alejandro Arrieche.
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