Nexo Product Manager Talks The 2022 Crypto Lenders Crisis And Which Coins Users Want Most (Exclusive Interview)

In the year 2022 has seen the rise of several cryptocurrency lenders, perhaps none more devastating to investors than the Celsius disaster. What followed was a year-long violent market in which prices were depressed and there was no real activity in the industry.

Two years later, the landscape is completely different. The total market value has more than tripled in the past several months, while BTC closes at an all-time high of $69,000.

At the CryptoExhibition conference in Bucharest, CryptoPotato had the opportunity to chat with Nexo's Product Manager – Dimitar Bratovanov – and what helped the company survive the creditor crisis, what are the latest products launched by the team, how they work, how users use them, which assets are in high demand and more. they are.

Nexo survived because of the overwhelming cooperation

BlockFi and Celsius Network are probably the best known of the crypto lenders that were under during the 2022 market crash. Although the company had its own political issues with the Bulgarian government, Nexo, on the contrary, was one of the few representatives that survived.

Speaking about it, Bratovanov said that the main reason Nexo survived and others did not were the company's fundamentals. Put differently, he believes that over-leveraging – meaning that all the loans the firm offers are backed by more assets than they're worth – is what makes the difference.

Additionally, he said Nexo's risk management policy is conservative, which has kept the firm afloat. Finally, the company strives to obtain permits and comply with regulators to prevent similar incidents from occurring.

Interest is back

Although he admits that user interaction decreased during the bear market, Bratovanov noted that demand for his company's products is returning, given the recent price increases in the crypto market. He added that users are more willing to take out loans when they keep their crypto holdings.

One of the products launched by Nexo in 2018 for this return demand is called Crypto Credit Lines. Essentially, it allows customers to deposit their cryptocurrencies as collateral and receive fiat or stablecoins in return. Once the users are approved and verified, the process is quick. Interest rates vary based on customer loyalty levels monitored daily.

The lender is focusing on the Nexo card, which allows customers to use it in two different modes – as a debit or credit card. You can switch it with a single switch and use the properties of two cards when you only have one.

If used in debit card mode, users spend their actual crypto holdings. When you don't pay with it, you get interest on their property. In contrast, you can receive up to 2% back when you use it like a credit card and don't spend your cryptos.

Although some of the company's products offer more than 30 different assets, including fiat, crypto and stablecoins, Bratovanov says bitcoin is the most popular asset in terms of holdings.

However, many users have started duplicating it with some other assets on the platform.