Nexo Product Manager Talks 2022 Crypto Lenders’ Crisis and Which Coin Users Seek The Most (Exclusive Interview)

Nexo Product Manager Discusses the Unique Challenges Faced by Crypto Lenders in 2022 and the Most Sought-after Coins (Exclusive Interview)

2022 witnessed the collapse of several cryptocurrency lenders, and one of the most devastating crashes for investors was the downfall of Celsius. This was followed by a year-long bear market with depressed prices and stagnant industry activity. However, the landscape has since transformed significantly. In recent months, the entire market cap has more than tripled, and Bitcoin is approaching its all-time high against the US dollar at $69,000.

During the Crypto Expo Conference in Bucharest, CryptoPotato had an exclusive interview with Dimitar Bratovanov, Nexo’s Product Manager. Bratovanov shed light on how Nexo managed to survive the lenders’ crisis, the latest products launched by their team, how these products work, how users can benefit from them, the assets in highest demand, and various other insights.

Survival Through Over-Collateralization

When discussing the lenders’ crisis, Bratovanov pointed out that while BlockFi and Celsius Network suffered significant losses during the 2022 market crash, Nexo managed to survive. He attributed Nexo’s success to the company’s strong fundamentals, particularly their over-collateralization strategy, where all loans provided by Nexo are backed by more assets than their actual value. This conservative risk management approach, along with Nexo’s efforts to obtain licenses and maintain regulatory compliance, were vital in avoiding similar crashes.

The Return of Demand

Bratovanov acknowledged that user engagement had declined during the bear market. However, with the recent price surge in the crypto market, demand for Nexo’s products is experiencing a resurgence. He mentioned that users are now more interested in taking loans while retaining ownership of their cryptocurrencies.

One of Nexo’s products, Crypto Credit Lines, which was introduced in 2018, has experienced renewed demand. This offering allows customers to use their cryptocurrencies as collateral and receive fiat or stablecoins in return. The approval process is quick, and once verified, users gain instant access to credit. The interest rates vary based on the customers’ loyalty levels, which are evaluated daily.

Another product that Nexo is focusing on is the Nexo Card. It can be used as both a debit and credit card, with users being able to switch between the two modes effortlessly. This versatile card allows customers to enjoy the benefits of both options while having only one card. In debit card mode, users spend their actual crypto holdings and receive interest on their assets when not in use. However, when utilized as a credit card, customers can earn up to 2% cashback without spending their crypto.

While Nexo offers over 30 different assets, including fiat, crypto, and stablecoins, Bratovanov emphasized that Bitcoin remains the most sought-after asset in terms of holdings. However, he noted that many users have started diversifying their portfolios by including other available assets on the platform.