On August 15th, crypto loan provider Nexo will pay 30% of its annual net income to users staking NEXO tokens.
Nexo, a provider of digital asset lending, will pay more than $ 6.1 million in dividends. The beneficiaries will be holders of the NEXO token itself, according to a press release.
“This payment marks a 154.32% increase over dividends distributed in 2019 and comes against the backdrop of financial volatility and uncertainties generated by the COVID-19 pandemic,” said the company.
Nexo is a centralized company that offers interest to those who want to lend their cryptocurrencies – unlike DeFi apps that do this without intermediaries, but with a greater risk. The company distributes 30% of its net profits to those who hold and stake the token of the same name.
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Nexo solidifies as dividend payer
“Our profit this year clearly shows Nexo’s development and resilience in the face of what may be the worst market conditions since the economic crisis of 2007,” said Antoni Trenchev, co-founder of Nexo.
On August 15, 2019, the company paid $ 2.4 million in dividends, distributed proportionately to NEXO-capable holders. That figure was based on net profit of $ 8 million in the first two quarters of 2019.
Trenchev added that digital finance products “will, in the very near future, fill the gap between digital and traditional finance.”
However, if DeFi hacks continue to happen, that future may not be that close.