2022 witnessed the collapse of several cryptocurrency lending platforms, with the Celsius incident being particularly catastrophic for investors. This turmoil led to a protracted bear market, characterized by plummeting prices and minimal activity within the sector. Fast forward two years, and the scenario has transformed dramatically. The total market capitalization of cryptocurrencies has surged more than threefold in recent months, and Bitcoin is approaching its historical peak value of $69,000 against the US dollar. At the Crypto Expo Conference held in Bucharest, representatives from CryptoPotato conversed with Dimitar Bratovanov, Product Manager at Nexo. He shared insights on how his company navigated the lenders’ crisis, the latest product offerings, their operational mechanisms, the benefits for users, and the most sought-after assets in the current market.
Nexo’s Resilience Amidst Crisis
While BlockFi and Celsius Network are among the most recognized names that succumbed during the 2022 downturn, Nexo managed to endure, despite facing its own challenges with the Bulgarian authorities. Bratovanov attributed Nexo’s survival to its strong foundational principles. He emphasized that the company’s strategy of over-collateralization—where every loan provided is secured by assets exceeding the loan’s value—played a pivotal role in its resilience. Furthermore, Nexo’s conservative risk management approach enabled it to remain operational during turbulent times. The firm is also committed to acquiring necessary licenses and aligning with regulatory bodies to prevent future crises.
Resurgence of Demand
Bratovanov acknowledged a dip in user engagement throughout the bear market; however, he noted a significant revival in demand for Nexo’s offerings as the crypto market experiences price surges. Users are increasingly interested in taking out loans while retaining ownership of their cryptocurrencies. One of the standout products introduced by Nexo back in 2018, the Crypto Credit Lines, has gained traction as a response to this renewed demand. This service allows clients to use their cryptocurrencies as collateral in exchange for fiat currency or stablecoins. Once users are verified and approved, the process is instantaneous. Interest rates are adjusted based on the clients’ loyalty levels, which are evaluated daily.
Nexo is also enhancing its Nexo Card, which operates in two modes—debit and credit—allowing users to switch between the two seamlessly. In debit mode, clients spend their crypto assets directly, earning interest on them when not in use. Conversely, when used as a credit card, users can earn up to 2% cashback without liquidating their cryptocurrency holdings. Although Nexo’s offerings encompass over 30 different assets, including Bitcoin, altcoins, and stablecoins, Bratovanov highlighted Bitcoin as the most demanded asset among users. However, there is a noticeable trend where users are beginning to diversify their portfolios with other assets available on the platform.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
