We hope the current Crypto Spring finds you in good spirits and health so that you can profit from these most dynamic and exciting times for the blockchain space.

Key Takeaways:

Nexo is the market leader in the crypto lending space and all our efforts are dedicated to ensuring that this continues to be the case going forward.

The essence of Nexo’s business model is unchanged and we are actively exploring new avenues to maximize token utility and investor value on our way to becoming a multi-billion dollar financial institution.

Despite unforeseen delays not dependent on Nexo, the Nexo Card is launching in Europe first. We are hard at work to expand card deliveries to our clients in other countries across the globe.

The promised new lower loan minimum of $100, new collateral options and referral program have been IT-ready for months but their deployment has been on hold while we secure additional funding. This has been done to meet the enormous loan demand that will inevitably result from introducing them.

With the next update in June the mobile app will become available for iOS and Android, while TRON will be onboarded as a new collateral option.

In June, we will announce the ex-dividend date for the next Nexo Dividend.

As ever, the entire Team is going the extra mile so that Nexo continues to be the undisputed market leader in the crypto lending space while delivering new features, functionalities and new opportunities to further enhance the Nexo product offering and to maximize value for the NEXO Token holders.

Building one of the most sophisticated and profitable companies in the blockchain space, and dedicating all our resources and mental capacity to that cause, has unfortunately come at the price of temporary neglecting the communication with the Nexo community which we are now seeking to remedy.

For too long have we ignored the malicious spreading of misinformation about Nexo and the NEXO Token — an income-generating digital asset with significant growth potential. This “FUD” has, in turn, affected both the Token price and the Nexo community.

With the clear understanding that “you can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time”, we would like now to address the misconceptions that are circulating.

Consistency of the NEXO Token Terms

There has been some speculation that the Token Terms have been amended. A look at them on the website clearly shows that this is not the case. All essential features, like the 30% profit-sharing and the Nexo Dividends are still very well part of our tokenomics.

While there are no major deviations from the initially set terms, changes are, of course, sometimes needed in order to adapt to new circumstances and changing business and regulatory realities. An example would be the introduction of the Loyalty Dividend which was not included in the initial Token Terms but was added later on — a move hugely appreciated by the community.

Good management of a company and our obligation to investors require us to remain flexible and precisely out of this necessity have we worded the disclaimers of all offering documents the way we did. This includes the Token Terms so that we can make these adjustments when needed. This is standard practice and many companies such as Binance have done it.

Should Nexo ever feel the need to fundamentally review its model, we will communicate it well in advance, as we have always done in the past. We are all in this together and the Nexo Team and Management is here for the long run. We are committed to building a multi-billion dollar company and everyone at Nexo stands with their reputations which have been asserting for over 10 years of FinTech success.

Updates on the Nexo Card

The launch of the Nexo Card is taking longer than expected for reasons outlined below. Those are issues that unfortunately Nexo has no control over. We have been fully committed to adjusting to the new market and regulatory realities and we will all reap the fruits of these efforts very soon.

Here are some of the basics of how card programs work so as to provide clarity:

The issuers of Visa and MasterCard do not offer international card programs, meaning that companies looking to start issuing cards are required to apply for and create separate card programs in different countries and continents. These have completely different card issuers with diverse and very lengthy processes.

To complicate things further, Visa and MasterCard have very strict policies on who can get approved for a card program, and are especially conservative for businesses involving crypto assets in their model. The rules have changed dramatically adding new requirements, especially since Visa stopped most of the crypto cards.

Suffice it to say, we did get approvals but we also got subjected to additional due diligence processes and/or have been asked to make adjustments in the model for certain jurisdictions, which slowed us down. Even receiving any feedback can sometimes take 6–9 months.

Therefore, the Nexo Card will not be immediately available internationally. Тhe Nexo Card may be on the MasterCard in some jurisdictions while being on Visa and other networks in others. What we did when experiencing setbacks was to appeal; look for new card issuers; find ways to adjust the model for the given jurisdiction, etc. — everything to launch the Nexo Card as soon as possible and in as many jurisdictions as possible.

The Nexo Card will first become available in Europe with more parts of the world following suit.

$100 Loan Minimum and New Collateral Options

Issuing our first credit line a year ago, we had a minimum loan requirement of $5000, which has gradually been decreased to just $500 — something unique in the lending space to this day. We are certainly looking to be even more inclusive and to lower the minimum loan further.

The reason why a lender imposes a minimum loan amount in the first place is because of the number of registrations, verifications, loans, repayments or support tickets it can physically handle without compromising the user experience. It is also connected to the costs associated with each loan.

Nexo has been able to service loans as low as $500 in 45+ fiat currencies to our community of over 200,000 users is because of Nexo’s 10+ years of experience in online lending automation.

There are two main reasons why we have not yet lowered the minimum amount even further and why we are not adding more collateral options yet (albeit being IT-ready for a long time):

Nexo does not charge its users any bank transfer fees and we would like to keep it that way. Precisely the same way we do not like charging our users with loan origination fees and/or liquidation fees like some competing companies do. While a lower minimum loan amount helps Nexo to become more inclusive and to significantly increase its user base, the bank transfers costs associated with tens of thousands of small loan transactions add up to a substantial amount for Nexo and currently, our banking and payment institution partners around the world are not willing to lower their fees. We are still negotiating these charges in our effort to bring them down while also talking to new payment providers to potentially find cheaper payment distribution channels. Lowering the loan minimum to $100 or aggressively adding more collateral options would further increase the demand side which we might not be yet ready to back with enough financing. This is true also for the upcoming affiliate program.

Since launching the platform a year ago, the demand for the Nexo Instant Credit Lines™ has been phenomenal, despite a ravaging bear market. But even though our corporate finance team is constantly raising additional financing, at times Nexo just cannot keep up with the ever-growing demand. As you might know, we have first turned to our customer base for additional financing, adding the “Earn Interest” Product which allows the community to earn 6.5% annual interest on stablecoins and EUR — a fully flexible account with no lock-up periods and no fees. This is part of our effort to raise more financing while giving back to the community by letting them share the success story of Nexo in yet another way.

For the reasons above, we have made the conscious decision to postpone the further lowering of the loan minimum and to slow down the onboarding of new collateral options to match the pace at which we are able to secure additional financing.

What we can disclose at this stage is that the latest voting results from Nexo’s ongoing community survey are unambiguous, and so TRON is the cryptocurrency to be onboarded in June.

We are positive that we will be able to present you with exciting news and opportunities in the near future which will culminate in Nexo becoming “NexoBank”.

Engaging with the Community

Nexo has always engaged in a constructive dialogue with anyone raising valid concerns.

Of course, there have been deviations from our initially communicated roadmap and delays have occurred which has frustrated members of our community. But in most cases because of issues that Nexo has no direct control over.

Delays are not uncommon for startups, but also for established companies in any line of business — otherwise, Elon Musk would have colonized Mars long ago. Or Richard Branson’s early backers would have had their long-postponed IPO.

After initial efforts to reason with the people spreading misconceptions and “FUD” and to explain the flaws in their statements and logic, Nexo has, of course, started taking actions to limit the spreading of detrimental and false statements on its official channels which is part of our fiduciary duty to our investors.

We are constantly working on creating a healthy space and it is up to the community and the market to decide whether or not we are succeeding.

Please refer to the plethora of positive testimonials about Nexo that are publicly available.

The Next Nexo Dividend

As all of you are aware, dividend-paying companies generally distribute dividends once a year. From the onset of Nexo, we have communicated our determination to introduce more frequent distributions.

In June, we are going to announce the ex-dividend date for the next Nexo Dividend.

Please make sure you read this article:

Conclusion

While we appreciate any constructive criticism and try to constantly better ourselves, ultimately those who are not satisfied with their investment with NEXO have multiple opportunities with enough liquidity to exit their positions and move on.

All of us are in all of this together and the interests of Nexo, as a company, and its management are perfectly aligned with those of the NEXO Token holders — in regards to the business, in regards to the performance of the token, and the overall development of the enterprise.

Amazing things are coming with the Nexo Card launching in Europe, the Nexo mobile app, the new collateral options starting with TRON and the second Nexo Dividend payout.

With the tokenization of the world, Nexo is in a perfect position with its leading automated lending infrastructure to capitalize on the widespread adoption that established behemoths of the financial world such as JP Morgan, Fidelity, the Yale Endowment fund and Facebook will ensure. The total addressable market for Nexo’s products thus rises to the trillions and we are happy to have you in for the ride!

Thank you for your trust!