What Is Nexonomics And Why It Should Be On Your Radar

Many blockchain projects were launched over the past few years. Some failed along the way, while others have so far managed to survive and seem quite promising. Among them is Nexonomics, but before we explore what it is about, we must first understand the underlying principles and company behind it.

What is Nexo.io?

It is a relatively new financial institution that only focuses on digital assets and happens to be regulated. This is an important part of the journey moving forward because it focuses on development through decentralized finance, which is currently one of the hottest subjects in the crypto segment. Nexo.io operates as a registered financial institution, which means that it provides financial services similar to those offered by traditional banks, but its focus is purely on cryptocurrencies.

Nexo.io allows users to use cryptocurrencies similar to how they would use fiat currencies. For example, you can earn interest on your crypto, borrow, and even spend cryptocurrencies. For example, you can secure an instant credit line through digital currencies. You can also earn interest in money; for example, you earn interest in cryptocurrencies and fiat currencies such as the USD, Euro, and Sterling Pound.

There is also the Nexo card, which is quite interesting because it is a card that allows cardholders to spend crypto similar to how they would use a card to spend their fiat money. This brings the convenience of owning and spending crypto to a whole new level.

What does Nexonomics Entail?

Nexonomics is a wordplay between the words Nexo and Economics. Therefore, it is used in the context of using the Nexo ecosystem for economic benefits similar to those offered by the banking sector. Nexonomics is thus the basket of financial features that are provided by Nexo.

One of the interesting observations about Nexo’s platform is that while it aims to deliver services similar to banking, such as earning interest, crypto custody, and borrowing, it also wants to function as a company. For example, users of the Nexo platform can purchase NEXO tokens that have actual value. The tokens will be considered shares on which the token holder can earn dividends on Nexo’s net profit.

Nexo will offer a base dividend to token holders, which will be paid out based on their proportion of NEXO tokens that they hold. They will also receive a loyalty dividend that will be issued depending on how long each token holder has had NEXO tokens in their wallet from the end of one dividend issuance to the next. The goal is to encourage more investment in the platform’s native token, thus allowing the investors to contribute to its growth.

Note that the Nexonomics approach does not focus on coming up with an alternative that will compete with traditional finance and economics. Its focus is on delivering services that users previously could not access in the crypto segment that can deliver notable value, especially on how crypto owners use their crypto. With that regard, it does not attempt to take on too much at once. It thus seems to be a subtle approach to the decentralized finance idea.

Why you should keep an eye on Nexonomics

Nexo plans to share as much as 30 percent of its profits with its token holders. This approach aims to provide incentives for more use of the platform and provide investment opportunities that will help keep the platform relevant. Thus, it is a potentially good avenue to invest in the crypto space through a different approach characterized by less risk.

Suppose the Nexo platform achieves the targeted success. In that case, it will unlock great investment opportunities where investors will not go through as much risk as when they invest directly in cryptocurrency pairs, for example. The dividend approach also provides a passive income opportunity, which makes it even more appealing. However, it will only be a good investment if the platform manages to reach critical mass as far as adoption is concerned.

The fact that the platform is fully compliant and that an asset-backed token supports it adds to Nexo’s appeal. History has demonstrated the need to invest in companies that compliant with many cases of crypto theft and scams. It also helps that the NEXO token is traded on Huobi, which is one of the top crypto exchanges globally.

Pushing towards the next phase of the crypto market

It is no surprise that Nexo was created in 2014, but it is only now starting to make headlines in the crypto community. The time seems ripe for companies that want to provide services in the crypto economy, and Nexo is right on time. The cryptocurrency went through the first phase of growth where people started to discover digital currencies, a situation that led to the crypto boom and bubble. All those events were critical in the grand scheme of things because they created crypto awareness.

Right now, more people are investing in cryptocurrencies than ever before. This is good news for companies like Nexo because the more people adopt cryptocurrencies, the more they will use them for daily or mundane spending, as well as investment activities. There are also the obvious benefits to cryptocurrencies and blockchain, such as decentralization, immutability ease of online transactions.

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