An Outlook on Nexo Dividends and Beyond

In our pursuit of transparency and for the benefit of our investors’ better understanding, we would like to shed light on some fascinating developments at Nexo and explain how dividends are paid out. This is of the utmost importance as it helps set the proper expectations.

Financing $1+ Billion of Loan Requests

As you are aware, Nexo completed a highly oversubscribed and successful Private Sale. Investors had plenty of reasons to choose Nexo, we were therefore able to raise $52.5 million and, as promised, the overwhelming part of these funds is now finding its way back to the community in the form of the world’s first instant crypto-backed loans, available in 40+ fiat currencies in more than 200 countries around the world.

This, however, is only the beginning as the Nexo team is constantly and tirelessly working on securing additional funding to meet the enormous demand. The management continues to have a busy schedule with meetings throughout Europe and the United States. We will share in due course news about exciting partnerships and business prospects in the pipeline resulting from our recent encounters and efforts.

The Nexo Team is working on multiple fronts to raise additional financing:

  • Acquiring an FDIC-insured US chartered bank
    The team’s endeavors to add a US commercial bank to Nexo’s operations are progressing well. Not only does this provide Nexo with a strong foothold in the US market but, more importantly, with access to additional cost-efficient financing. The latter, in turn, allows a rapid expansion of the loan portfolio to meet the constantly growing demand. Other market leaders like Circle and Coinbase have also chosen Nexo’s path.
  • Securitization of the loan portfolio
    We are working on structuring a fixed-income financial instrument based on our asset-backed loan portfolio, which is a familiar investment vehicle to our institutional partners looking for regular yields. This also provides Wall Street with an entry into crypto.
  • Accepting new crypto assets as collateral
    Nexo has over 38 applications from different blockchain companies who want their tokens/coins accepted as collateral on the Nexo platform. This opens up further growth opportunities as many of those companies have expressed interest in providing financing for Nexo to issue loans backed by their respective tokens.

Our goal is nothing short of meeting the demand for crypto-backed loans. This creates an enormous revenue boost and results in larger dividends for NEXO Token holders.

Ensuring Further Growth

But even with the massive demand for Nexo’s current product, we see much more room for growth. Nexo is enabling loan issuance in new fiat currencies, tapping into new and unexplored markets and gaining additional market share. We aim to empower our clients to spend their cash through the comfort of their free Nexo Credit Card, while institutional partnerships add multiple new service capabilities and propel Nexo well beyond lending.

Nexo Dividends Explained

How Dividends Аre Calculated

Nexo is a fully-operational financial institution and, as any institutional lender, it operates in accordance with IFRS accounting standards. In its current state, the company generates operating revenues from crypto-backed loans. At the same time, in order to develop its strategy, expand its service and manage its day-to-day agenda, Nexo incurs expenses related to sales, general operations, marketing and administration, pays corporate tax, etc. The company’s positive bottom line is called its Net Profit and, when achieved, 70% from it will be reinvested back into the company to fund more crypto-backed loans, and

a fixed 30% from the Net Profit is paid out as dividends to NEXO Token holders in the given accounting period.

Comparing Nexo and Credissimo

While being powered by the 10 years of Credissimo expertise in online lending, Nexo is a separate legal entity. Please note that in comparison to an unsecured consumer lender, such as our long-standing company Credissimo, Nexo is free from underwriting and impairment costs, as well as certain typical operating expenses, such as those related to collection, litigation, call center operations, etc. Consequently, we expect comparatively greater profit margins with Nexo.

Frequency of Dividend Distribution

Corporations around the world customarily handle dividend distributions on an annual basis. Upon closing their financial statements at the end of each fiscal year and based on their profitability, they decide on distributing dividends at a certain point during the following fiscal year. In the best interest of our investors, Nexo is committed to break this routine and introduce more frequent dividend payments where operating results and IFRS accounting standards permit. Not only does this offer our investors

long-term capital gain opportunities from the potential upside of the NEXO Token but also provides them with an instrument with a regular and growing passive income.

Dividend Requirements

Nexo pays 30% of its Net Profit in the form of dividends and they are available to all NEXO Token holders, regardless of how many tokens they own, as long as two conditions are met:

1. NEXO Token Holders must undergo one-time KYC verification just as they would do at any other compliant financial institution. Nexo’s KYC process is very simple, fully automated and usually takes less 2 minutes;

2. NEXO Tokens must be held/staked in your Nexo Wallets at the ex-dividend date, which is 10 days prior to the dividend distribution date. The first ex-dividend date will be communicated in advance, so that token holders have more than enough time to deposit/stake their NEXO Tokens in their Nexo Wallets, if they have not done so already.

Both measures ensure compliance with the highest KYC/AML standards for securities. They furthermore aim to ensure fairness in dividend distribution, prevent fraud, market and price manipulation which are sometimes witnessed with dividend-yielding common stocks around the world.

Dividend Distribution

  • Dividends are calculated in USD and paid in your Nexo Wallet in ETH and/or NEXO Tokens and/or USD stable coin, whichever creates greater value for NEXO Token holders at the given moment, which will be decided by Nexo. Should NEXO Tokens be used, they will be acquired by Nexo on exchanges or collected from loan interest repayments using NEXO, as of course no new tokens can be issued, as specified in the audited smart contract. In any case, the ETH/USD and NEXO/USD conversion rates used upon dividend distribution are based on volume-weighted averages across multiple exchanges.
  • All efforts within Nexo are focused on the company being profitable as soon as possible which is a prerequisite for dividend distribution.
  • The entire dividend will be paid out to all qualifying NEXO Token holder proportionally to their holdings, including NEXO Tokens used as collateral for loans. This means that eligible token holders will also receive the dividends of all ineligible token holders.
  • Nexo does not provide any tax, legal, accounting or reporting advice. You should always consult your own tax, legal and accounting advisors on related matters.

Delivering vs. Just Talking

Finally, we would like to assure all our clients, investors and supporters that we are a very vibrant and driven company, working zealously on the management and constant improvement of our product.

Ask yourself honestly — how many of the hundreds of “ICO” projects out there have launched a live product? How many of them are earning real revenues as is Nexo already?

If you do not hear from us for a number of days, do not take it personally. This means that we are hard at work issuing loans, building new products, securing new financing, improving the customer experience and implementing new platform features, etc. Unlike other participants in the blockchain arena who spend their energy sharing every idea they generate or every event they attend, we promise to spare you the mundane details and inform you only of the practical and real, yet groundbreaking advances, which we have made for the benefit of Nexo’s continuous expansion, our investors and that of the community as a whole.

We do not pursue, nor do we promise instant gratification. As our 10-year success story with Credissimo of servicing millions of people throughout Europe unequivocally proves, we know how to execute and deliver results, especially when compared to the majority of other offerings in our domain. In the case of Nexo, our investors can expect regular, growing dividends and superior long-term returns.

Do check out our earlier blog posts, share them with your friends and let them too be part of the Nexo success story!

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