Nexo Product Manager Talks the 2022 Crypto Lenders Crisis and the Coins Most Searched for by Users (Ex.
2022 has witnessed the collapse of numerous cryptocurrency lenders; Perhaps none of these were more devastating to investors than the Celsius crash. This was followed by a severe bear market for a year when prices were low and there was little or no activity in the industry.
Two years later the landscape is completely different. BTC is approaching its all-time high of $69,000 against the Dollar, as the entire market cap has more than tripled in the last few months.
During the Crypto Expo Conference in Bucharest, CryptoPotato He had the opportunity to chat with nexo‘s Product Manager Dimitar Bratovanov and explained what helped his company survive the creditors’ crisis, what are the latest products the team has launched, how they work, what benefits users can enjoy, which ones are important. assets in highest demand and more.
Nexo Survived Due to Overcollateralization
BlockFi and Celsius Network are perhaps the most well-known names of crypto lenders that went bankrupt during the market crash of 2022. Nexo, on the contrary, was one of the few surviving representatives of this niche, although the company had its own political problems with the Bulgarian government.
Speaking about the issue, Bratovanov said that the main reason why Nexo survived and others did not was the fundamentals of his company. More specifically, he believes that overcollateralization—meaning that all the loans his firm makes are backed by more assets than their actual value—is what makes the difference.
He also argued that Nexo’s risk management policy was conservative, which allowed the firm to survive. Finally, the company is working to obtain licensing and comply with regulatory authorities to prevent similar accidents from occurring.
Demand is back
Acknowledging that user engagement decreased during the bear market, Bratovanov stated that demand for his company’s products is now returning, given the recent price increases in the crypto market. He added that users are more likely to take out loans while protecting their crypto assets.
One of the products that Nexo launched in 2018 for this returning demand is called Crypto Credit Lines. It basically allows customers to put up their cryptocurrencies as collateral and receive fiat or stablecoins in return. Once users are approved and verified, the process is instant. Interest rates vary depending on customers’ loyalty levels, which are monitored daily.
The lender is also focusing on the Nexo Card, which allows customers to use it in two different modes as a debit card or credit card. They can exchange it with a single exchange and thus benefit from the features of two cards while having only one card.
If used in debit card mode, users will spend real crypto assets. With this, they receive interest on their assets when they do not make payments. In contrast, they can get up to 2% cash back when they use it as a credit card and don’t spend their crypto.
Although some of the company’s products offer more than 30 different assets, including fiat, crypto and stablecoins, Bratovanov suggested that the highest demand in terms of asset assets is Bitcoin.
However, many users have begun to diversify with some of the other available assets on the platform.
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