Nexo has announced that it will take the gram ICO token from Telegram as collateral. Nexo is a blockchain-based, cryptocurrency-backed loan system established by European FinTech firm Credissimo. To access their services, users deposit supported cryptocurrency coins and tokens into a Nexo wallet and receive an instant cash loan in either USD or EUR. Loan details are established by the Nexo Oracle and stored in an Ethereum smart contract.
Crypto Lending Programs
The firm started out in April 2018, and is remarkably supported and guided by TechCrunch founder Michael Arrington, who confirmed to reporters at the time that he holds a stake in the startup. Following Nexo’s announcement, Telegram users have been provided with incentives to take loans, but the issue is, the tokens may not be available for some time.
Nexo revealed that, as soon as tokens have been obtained preceding the first public sale of gram tokens by means of the Liquid exchange platform, scheduled to kick off on the 10th of July 2019, it will make available the option for clients to use the tokens as collateral for its on the spot credit lines and planned credit card. The restricted gram sale –which is the first time it will be open to the general public – is being put together through Gram Asia, a Korean establishment alleging to be the principal holder of gram token – gotten through Telegram’s private, multi-stage ICO last year. The token sale earned an astounding $1.7 billion in two phases – the highest raised through an ICO at the time. It is however, noteworthy that Telegram is not associated with the gram offering, as reported to the press by the Liquid exchange.
Telegram Open Network
The ICO capital is being utilized to grow the Telegram Open Network (TON), a go-getting blockchain project intended to distribute numerous aspects of digital communication, varying between document sharing to browsing and even transactions. The Liquid exchange directs that gram tokens will be put on sale at a price of four dollars ($4) each. Interestingly, Both U.S. dollars and the USDC stablecoin may be used for purchases.
In spite of this, it may be some time before grams are easily accessible by the users, and also before these users can actually get to use them for backing Nexo’s loans. This is because the acquired tokens will not be made available to investors immediately. New holders will be required to put off using the token until the TON unveiling, as a result of which point tokens will be paid out in four segments over 18 months.
A Nexo representative revealed in an interview that If the mainnet is unveiled, clients would be able to request for their tokens at launch and instantly use them to borrow from Nexo, or to spend through the firm’s upcoming credit card. According to the representative, TON is scheduled to go live in the third quarter of 2019. He added that if the grams get a widespread public offering, the token has the capacity to turn out to be one of the largest cryptocurrencies by market cap. The complete launch of the TON network is also to be expected to improve the market for grams.