The native token of crypto exchange NEXO is up 40% on April 29 following the token’s launch on Binance. The token, which launched at 14:00 UTC, is currently trading at $2.9, having hit a peak of $3.5 earlier in the day.
Nexo recently realized their crypto-backed card that allows users to take credit lines using crypto as collateral. By holding at least 10% of your balance in the native NEXO token, you can get 0%APR for low LTV amounts.
The launch was postponed by 4 hours after it had already jumped 20% in anticipation of the listing. The announcement may have been the catalyst for investors to jump in on other exchanges such as BitFinex before going live on Binance.
The price is highly volatile, typical for new listings on large exchanges.
This story is developing, and we will update this article with further information.
UPDATE 16:00 GMT April 29:
As Bitcoin fell back under $39,000 it seems that the momentum has been taken out of NEXO’s Binance debut. The token fell back to $2.2 within an hour of the listing. The volatility of the crypto market is clearly evident as buyers who bought the peak are down 38% in less than an hour. However, the nature of the NEXO platform incentivizes users to hold their tokens in order to retain their APY in savings accounts for other tokens. The token is still up on the day regardless of the daily volatility.
On the listing, Antoni Trenchev, Co-founder and Managing Partner of Nexo commented,
“Nexo has had synergies with Binance from the very inception of our business through the addition of BNB to our Instant Crypto Credit Lines and the BEP2 version of the NEXO Token. Binance listing our token is a prime example of two of the biggest names in crypto working together to boost the ecosystem and bring improved market opportunities to users. What’s exceptional here is the mutual contribution to the future of finance.”
We interviewed Trenchev whilst at the Paris Blockchain Summit. You can view the interview here.