Update No 3 of August 1, 2020

Crypto currencies in general

While the global economy is suffering the biggest crisis since the end of the Second World War in the wake of the Corona Pandemic, with dramatic slumps in economic indicators such as gross domestic product, precious metals markets and crypto currencies have experienced a significant upswing. The price of gold has reached an all-time high, crypto-currencies, led by Bitcoin and Ethereum, are soaring.

One of the biggest drivers of these movements is the vast amount of money governments are creating to borrow billions, even trillions, to combat the devastating effects of the pandemic. The low interest rate policy of the central banks does the rest. As a result, global and institutional investors are once again increasingly turning to digital assets and opting against inflation-prone assets such as fiat currencies.

Source: https://www.tradingview.com/symbols/CRYPTOINDEX-CIX100/

In the course of this run on crypto currencies, their market capitalization has reached a new annual high of EUR 274 billion in recent weeks.

Source: https://coinmarketcap.com/charts/

Source: Bitgur Volatility Index

The high level of activity in the market is reflected in the jumps in the volatility index. They indicate continued demand from institutional investors, who buy and sell on a speculative basis. This creates opportunities for short-term trading. In the long term, however, it is difficult to imagine a sustained decline as ever larger players continue to enter the market.

For example, the payment giants VISA and MasterCard have made public their efforts to integrate crypto currencies such as Bitcoin into their payment networks. Similarly, PayPal has stated in a recent letter to the European Union that it is actually working on the integration of crypto currencies. Since a few days, all banks licensed in the USA are also allowed to store crypto-currencies.

In short: the crypto market has recovered and seems to have weathered the crisis well.

Our portfolio

Overall performance

The portfolio shows a 47% increase over the last two months. This is mainly due to the enormous value growth of Ethereum and ChainLink and the good performance of Bitcoin.

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Coin of the month: Nexo (NEXO)

Nexo is a token with a current market capitalization of €110,519,145. The current daily trading volume is €3,504,935, giving a ratio of 3.2%. There are 560 million coins in circulation.

Highest price in the last 12 months: €0.20 (July 2020), lowest price: €0.08 (March 2020). The volatility is 175.36 points (source: Bitgur).

Source: CoinMarketCap

Nexo is a crypto-credit platform, founded in 2018, which enables holders of digital assets to borrow cash with their crypto-currencies deposited as collateral. These grant a corresponding credit line without prior credit check. All deposits with Nexo are insured with up to 100 million US dollars by the world’s leading asset manager BitGo and the London insurance group Lloyd’s. The coins and tokens only need to be transferred to the bank’s own Nexo wallet. The loans are immediate loans that are paid out in fiat currencies.

The service was developed by the Swiss Fintech company Credissimo, which is monitored by Deloitte. The service currently covers 45 Fiat currencies in more than 200 countries. According to its own information, Nexo has so far processed more than 3 billion US dollars for more than 800,000 users.

Customers always remain the owners of their deposited cryptos. The loans can be repaid with cryptos, fiat currencies or with the own Nexo crypto currency. Deposits are possible with over 20 crypto currencies, including Bitcoin, Ethereum, Ripple, Cardano, Monero or Binance Coin. Customers receive a Nexo card, a flexible credit card secured with these coins and tokens. For invested Stablecoins and Fiat currencies, Nexo also pays a fixed yield of 8%.

The Nexo Coin is the crypto currency of the platform. It is an ERC-20 token. The special thing about it is that the holders of the Nexo Coin can earn a dividend. 30 percent of the company profit generated from the loans is distributed evenly to the holders of NEXO. The first dividend was $912,071 and was distributed on December 15, 2018; the second dividend was $2,409.57 and was distributed on August 15, 2019. A third dividend is planned for August 5, 2020.

The Nexo Coin is not yet very well known, according to CoinMarketCap it is only ranked 69th in terms of market capitalization, but if the platform becomes more popular and attracts more customers, there is nothing to prevent a positive price development. One step in this direction is the announced partnership with ChainLink.