Crypto lending platform Nexo has announced that it would be paying out 30% of its profit, equivalent to $6.1 million, as dividends to those who staked their Nexo token. The payout would take place on August 15th as per the Press Release. The official statement from the crypto lender read:
“This payout marks a 154.32% increase on the dividend distributed in 2019 and comes against the backdrop of financial volatility and uncertainty spurred by the COVID-19 pandemic.”
Nexo is a centralized lending platform where users can lend their crypto holdings to generate interest on their staked cryptocurrency. The firm also promises to pay out 30% of its net yearly profit to those that hold Nexo’s native token. The lending works quite the opposite to that of decentralized finance where there is no need for a third-party, and users can only stake ERC-20 tokens.
The moment you’ve all been waiting for!
🎉The 3rd Nexo Dividend is $6,127,981.39! 🎉
— Nexo (@NexoFinance) August 5, 2020
The firm has made quite a profit from last year given, on August 15th, 2019, the firm only paid out $2.4 million in dividends, which has almost grown by 3X this year. The growing profits of crypto lending firms like Nexo or the tremendous rise of the Defi ecosystem suggest the bullish sentiment of the crypto space and how people have started using crypto beyond trade markets. Antoni Trenchev, a co-founder of Nexo, commented on their phenomenal performance and said:
“Our profit this year unequivocally showcases Nexo’s development and staunch resilience to what are perhaps the toughest market conditions since the 2007 economic crisis,”
The co-founder also predicted the rise of digital finance shortly and believed that the gap between the traditional finances and digital finances are already narrowing down and might become negligible as more people see the technical advantages that digital assets offer over traditional ones.