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First Ever Dividends Paid to Investors by the Instant Crypto-backed Loans Provider NEXO

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by Julia Sakovich · 3 min read
First Ever Dividends Paid to Investors by the Instant Crypto-backed Loans Provider NEXO
Photo: Nexo / Medium

Nexo has created a precedent in the industry, having paid the first dividend of over $900,000 in Nexo tokens to its holders.

Though the previous year became a real challenge for numerous crypto firms and private traders, Nexo has managed not just to survive but also to successfully distribute over $900,000 in Nexo tokens (NEXO) to its holders.

The company positions itself as the world’s first instant crypto-backed loans provider. It took its crypto lending model just 6 months to bring the project a net profit of $3,040,239.

Recently, the project has published its interim report revealing that those people who had made investments in Nexo during or after its ICO held in 2017 received their first dividends.

The total sum distributed to token holders amounts to $912,071.00 in NEXO. According to the information provided by the project, the tokens were distributed to eligible NEXO Holders on December 15, 2018.

The amount of the dividend paid was based on the exchange rate of NEXO and USD which was $0.104256. It means that with over 309 million eligible tokens being kept by investors on the platform at the ex-dividend date, US$0.002945 per token were reportedly sent to token holders.

Given this data, it can be concluded that the NEXO’s annualized dividend yield of 4.80% is higher than all dividend stocks presented in the portfolio of Warren Buffett. Apple’s annualized dividend yield is 1.4%, JPMorgan’s – 3%, and Goldman Sachs’ – 1.6%. It’s also worth mentioning that the interim dividend is not taxed.

At the press time, the Nexo token is traded for $0.0732 with a market capitalization of $40 994 012.

Benefits for Investors

Speaking about the progress of the project, company’s CEO Anthony Trenchev stated:

“We have had people borrow for all sorts of purposes from buying a car and going on a vacation to purchasing a new home, which are significant events in people’s lives. Now we are taking the next logical step of sharing of profits with our community of investors.  At Nexo, we believe that this concept will be the next huge trend across a quickly tokenizing world.”

As for the dividend paid by Nexo to its eligible token holders, the sum distributed in a given dividend period equals 30% of the project’s net profit. Such an initiative gives investors an opportunity to earn capital in the long term in case of potential NEXO’s value growth and offers them a potentially constantly growing passive income.

Future Developments

Despite the fact that the previous year was rather a busy one for the project, its team is not going to relax this year as they have a lot of things to do in order to expand its services and enhance the clients’ experience.

Via continuous reinvestment of earnings, expansion of joint ventures, institutional partnerships, and direct acquisition of banking capacity in different corners of the world, the project is planning to support continuous loan portfolio growth.

Among other milestones to be translated into life are expansion of collateral options, development and integration of user functionalities, the launch of its own credit card program and many other initiatives.

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