Update On The Nexo Token Sale
Dear Nexo Community, Supporters,
The Nexo Team would like to take a moment and thank each and every one of you for the extraordinary support. Much has been accomplished in a very short time and testimony to that are the overwhelming interest for both NEXO Tokens, Nexo Instant Crypto-backed Loans and the fact that Nexo.io Community is the third largest group on Telegram with 55k+ members. True to the principles of transparency that we have always adhered to in our 10+ years as a leading European FinTech company, we believe in sharing all decisions openly with our community.
- The Private Pre-Sale is oversubscribed by a factor of 5x and the applications for the Public Pre-Sale Whitelist indicated an 11x oversubscription with a growing waiting list.
- The Public Pre-Sale and Main Token Events will however not take place due to increased institutional support. All whitelisted participants will receive 100 NEXO Tokens as a small compensation.
- The hard cap remains unchanged at $52.5 million.
- The planned Dutch Auction will not take place, instead each NEXO Token sold during the Private Sale has now a fixed price of $0.10.
- Early requests and applications for the Nexo Instant Crypto-backed Loans now exceed $500 million, beyond our most optimistic projections.
- To fund this massive demand, an additional 250 million NEXO tokens will be allocated as Loan Funding Reserves which will be locked for up to 12 months with a 6 months cliff, thus not increasing the total circulating supply at the end of the token sale and not diluting dividends to existing token holders. The change received full support from our advisors, key investors and partners.
The Public Pre-sale And Main Token Events Will Not Take Place
The Nexo Investor Relations Team has been literally bombarded with requests. The Private Pre-Sale is oversubscribed by a factor of 5x and the Public Pre-Sale investor interest indicated an 11x oversubscription with a growing waiting list. During the last few days Nexo has received a large number of key institutional investments and thus a very limited supply of NEXO Tokens remains available. Therefore, the Executive Management had to take the difficult but necessary decision to cancel both the Public Pre-Sale and the Main Token Events, despite the huge demand from the crypto community. All whitelisted participants will each receive 100 NEXO Tokens in an Airdrop campaign to their Nexo Wallet on platform launch in April.
The Hard Cap Remains Unchanged At $52.5 Million
While accounting for the current oversized demand for NEXO tokens, the hard cap remains unchanged.
The Announced Dutch Auction Will Not Take Place. NEXO Token Price Is Now Fixed At $0.10.
Simple solutions — this is what Nexo and the company’s services stand for. We have decided to cancel the Dutch Auction. Each NEXO Token has now a fixed price of $0.10. Private Sale investors will receive their bonus tokens, as per their agreements.
Loan Funding Reserves
Requests for early access and applications for the Nexo Crypto-backed Loans now exceed $500 million and this is beyond our most optimistic expectations. We would like to address that need of the crypto community by allocating an additional 250 million NEXO tokens as Loan Funding Reserves which will be locked for up to 12 months with a 6 months cliff, thus not increasing the total circulating supply at the end of the token sale. The Nexo project has never been intended for quick flippers but for savvy investors and long-term believers and Nexo’s Management has been very careful to devise a strategy to meet the demand for the Crypto Loans while protecting its investors’ interests. That is why the introduction of Loan Funding Reserves received full support from our advisors, key investors and partners. Here are the effects on:
- Revenue And Profitability: The larger the loan portfolio, the greater the total volume of loan transactions and revenue from operations. The contingent increase in the portfolio monetary size does not result in a proportional increase of the related operating expenses. Therefore, investors would be pleased to learn that the future portfolio expansion directly influences operating and profitability optimizations;
- Dividends: Future enlargement of the loan portfolio does not dilute dividends for existing token holders. On the contrary, operating optimizations translates into a dollar-for-dollar proportionally larger net income metrics. Ultimately, the fixed dividend distribution rate of 30% to token holders ensures a larger absolute size of the dividend yield.
Simply put — extending more loans means more dividends for NEXO Token holders. An enlargement of the loan portfolio results directly in more issued loans, larger expected revenue and profit, thus ultimately larger dividend distributions.
By their very nature both the Nexo Instant Crypto-backed Loans and the NEXO Tokens differ significantly from anything that the crypto world has seen thus far.
Notice To Existing Investors
We recognize that some investors might perceive that as change of terms. Therefore Nexo will grant such investors the option to request a return of their entire investment and such requests should be forwarded to firstname.lastname@example.org until March 8th, 2018. Freed-up NEXO Tokens will be released to investors on the waiting list without any bonus.
We thank all those who choose to be a part of Nexo’s visionary approach that will pave the way for new possibilities within the crypto space and beyond.