Nexo About to Distribute $6.1 Million in Dividends

Nexo About to Distribute $6.1 Million in Dividends 1024 500 Crypto Rand Group
nexo dividends

Nexo Cryptomoney Loan Service will distribute $6.1 million worth of dividends in profits to holders of the platform’s native token.

Distribution of dividends

The Nexo project is a supplier of instant credits in cryptomoney. The project was developed by Credissimo, a traditional financial loan group with millions of customers in Europe.

Nexo is a centralised company as opposed to decentralised finance applications (DeFi) which carries out the same activity on the block.

The company will distribute 30% of its annual net profit for the period from June 30, 2019 to June 30, 2020.

According to the press release, the company will pay $6.1 million in dividends to NEXO token holders as of August 15. To be eligible for this distribution, one must have an audited account on the platform and perform NEXO staking.

The company conducted a capture of the NEXO token distribution on August 5 at 15:00 UTC.

Following the announcement of the dividend and the snapshot, the NEXO price dropped from $0.24 to $0.183, a drop of 24% in a few hours. However, the token has seen an increase of nearly 140% over the last 3 months:

NEXO price evolution in recent months – Source: Trading View

Can Nexo compete with DeFi ?

The dividend for 2020 has increased by 154.32% compared to last year, which reflects the good health of the company’s cryptocurrency lending service. Antoni Trenchev, co-founder of Nexo, said :

“Our profits this year clearly show the company’s growth and resilience in what may be the most difficult market situation since the economic crisis of 2007”.

Antoni Trenchev added that digital financial products will, in the very near future, bridge the gap between digital and traditional finance.

Despite the craze for DeFi, companies such as Nexo also seem to want to carve out a place for themselves in the crypto-lending sector.

Opyn, a decentralized finance application, recently lost $370,000 due to a loophole in a loan insurance contract. Nexo was expecting no less to boast the benefits of its centralized service. The company has $100 million in deposit insurance provided by BitGo and Lloyds Bank.

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