The crypto world has been abuzz with excitement, and naturally questions given the rise of Solana and networks and coins in the past week. Luckily, as August came to an end yesterday, was the perfect time for our monthly AMA.
Lots of you pitched in to Ask-Antoni-Anything and as usual there we some great questions in the mix. Тhe top five topics are summarised in this blog post. You can also watch the whole AMA here:
Do you think the Buyback program was successful and will you be doing another one?
The NEXO Token Buyback has been a phenomenal success, this is evident in the price of the NEXO Token which is due in part to the Buyback program and also to our token’s multiple new utilities. We have not even exhausted all the funds dedicated to the Buyback program, but once we do we will definitely allocate more funds to it because it has been an incredible success.
Will there be any Nexo products specifically for mortgages and/or buying cars?
Traditional mortgages where you get financing against pledging your real estate is not something we can offer at this stage because there are questions of rehypothecation of the real estate and how we would secure it. Until real estate is tokenized and traded widely on exchanges, we will not be able to offer mortgages in the literal sense of the word.
Nexo is structured to eliminate credit scores because they limit us to clients in developed countries in the world. With Nexo as soon as we know who you are and you have the needed collateral, we extend credit to you. This allows us to be open, transparent, and inclusive in our business. When using real estate and cars, the rehypothecation becomes a lot more difficult and we are not in a position to asses and operate with these types of property right now. With cars specifically, the situation is even more complicated since they tend to have diminishing value compared to real estate which tends to go up.
Having said all this, we have a brunch of clients who have used their crypto assets to borrow against them and buy houses or cars. This is absolutely possible with Nexo. One of the more famous cases was when Brock Pierce borrowed against his Bitcoin and used the loan to buy an old Catholic chapel in Amsterdam. So you can indeed use Nexo’s services to purchase a home.
When will the proof of reserves/audited report be presented?
The audited report is a more complicated process than proof of reserves. But I do have an update for you guys, on the latter: Our proof of reserves is in the final stages. I think people will be pleasantly surprised by the release date, it’ll be a lot sooner than you might be expecting. We’ll be one of the first crypto lenders to maintain up-to-date proof of reserves. To the best of my knowledge, only exchanges currently do this, so we will be pioneers in this sense yet again. Be on the lookout for this, it’s coming real soon.
Are we ever going to be able to buy stocks on the Nexo platform in the future?
This question relates to regulation. We saw in early 2021 how exchanges swarmed to tokenizing stocks and gave people the opportunity to trade derivatives on stocks and commodities. In the US these firms were very quickly forced to suspend their services due to regulations. Our team was super excited to do the same initially but we decided to hold off precisely because we did not know how long we would be able to offer these products and what the legislation for such services would be. I would rather we didn’t spend time and energy on potentially unsustainable services, so I don’t see stocks on Nexo happening in the near future. The SEC would have to pass conclusive legislation before we release similar products.
We know you’ve still got many more questions already prepared for the next AMA and we are already looking forward to seeing and answering them next month!