Speculator Notes#3 NEXO Telcoin


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What a week this is turning to be. Full of twists and turns! There is a sense of regulatory maturity and acceptance in a way. From XRP, Ripple Inc., Cardano, Bitcoin and now Venezuela, it couldn’t be better for value-searching and relentless crypto traders. 

It may be XRP’s partnership with BitPay, the development in Cardano via Shelly Testnet launch, and Venezuela’s progression towards a more open cryptocurrency society. But what of other low risk, high reward, low to medium cap digital assets that have a well laid out roadmap and valuable partners? 

In week’s speculator’s notes, we identify two such projects that I’m convinced is worth a second look in Q4 2019. One thing though: Beware that this is not investment advice, neither am I endorsing any project. Do your due diligence and base your investment decisions on solid and well-researched findings. 

So, which projects are these? Well, let’s get started:

NEXO

Think about it, there is a wave of fiat debasement around the world. The FED, the ECB and other central banks are slashing interest rates and purchasing more assets to salvage their respective economies. With QE and preventive monetary policies, owning cryptocurrencies is a strategic, risk-averse move. 

Why? Digital assets are immune to these interventionist stuff. How Bitcoin behaves during periods of economic crisis is leading, and Nexo found an opportunity. Nexo is a blockchain-based overdraft system based in Switzerland and has a partnership with Credissimo. 

Credissimo are veterans in finance. While that is a huge plus, other well-thought out factors as automation where loan APRs are calculated via their Nexo Oracle, and insured funds are stored by BitGo in an audited Ethereum smart contract, it is their transparency and their thrive to dominate the cryptocurrency lending sub-sector that is ticking.

Guys, Nexo is a security, compliant with SEC’s rules and there are audited financial statements as part of their compliance. Token holders, aside from enjoying capital gains also receive dividends. Recently, Nexo distributed $2.409 million as dividend-with the obvious trend that these allotments keep rising.

I’m bullish on $NEXO because:

  • People will continue to borrow funds regardless of the base currency. It is just how the world operates. Willing lenders, willing borrowers agreeing on a determined interest rate. That demand alone plus Nexo’s global reach-and ease of borrowing, and the infancy of the industry means $NEXO could be highly undervalued at spot rates. Just to quantify, Nexo has distributed over $700 million to over 200k across the globe since launching. 
  • There are heavy weights involved. Credissimo is behind Nexo but their decision to rope in a qualified custodian in BitGo means token holders-and those lending their coins, are guaranteed of security. As it is there are security concerns in the space stemming from the decentralized nature of crypto operations. Few people can shoulder the responsibility of securely storing their coin’s private keys. When lending, that responsibility is shifted to Nexo who in turn passes that baton to certified experts.
  • They have launched a mobile app for clients. This further complements their work of building the Utilities 2.0 for NEXO tokens. Upon completion, there will be a plethora of amazing features for clients. However, that’s not forgetting their partnership with Terra that will further thrust them into the spotlight in South Korea.
  • More and more coins are being supported for lending. TRX was the latest. Furthermore, lenders can earn interest on Euro, USD and GBP, and even stablecoins–USDT, TUSD, USDC, PAX, and DAI. Interest rate is 8% APR on stablecoins, how can’t that be attractive? Cool thing about this is that there are no hidden fees neither are there minimum repayments. Just recently, LTC was recently added as a loan repayment option, widening options for borrowers.
  • Nexo will be listed at Binance DEX after receiving majority votes. Earlier, they had sent for a proposal for listing.

For more fundamentals check our long format review here: https://cryptogems.com/nexo-worlds-first-instant-crypto-credit-lines/

Telcoin (TEL)

We wrote a long format post on Telcoin here

It is not rocket science that remittance companies charge exorbitant fees. But there is good news. The penetration of the internet has been a reprieve, and recent statistics attests to this. It has contributed to financial inclusion, and Telcoin is right in the middle of this revolution. 

Telcoin does what they know best: incorporate mobile operators for financial inclusion and eliminating previous pain points of KYC, trust and reach. There move was strategic, taking advantage of the high rate of mobile penetration in developing countries. Leveraging this fast-tracks their drive of offering cheap remittance which fosters financial inclusion. 

Because of this, mobile money subscribers can send, buy, and sell Telcoin tokens with the operator as the intermediary. TEL are distributed to Telco partners depending on their level of adoption, promotion and integrity. There is a strict issuance model in place for this purpose.

Remittance and ecommerce are multi-billion industries, and Telcoin is merging two of the world’s disruptive developments in blockchain and mobile technologies. There are challenges, yes, but they are progressively moving towards their objective. 

I’m firm on $TEL simply because of:

  • The media attention it has been receiving in the last couple of months is enough to justify what the future holds. Since their objectives are clear and are desirous of playing crucial roles in ecommerce, financial inclusion and remittance, their reputation and their capable platform-it can handle 5 billion subscribers, could pump TEL valuation. Presently, TEL is in the top-200 of the world’s most valuable coins, out of the 2,000+ digital assets.
  • Pure mathematics: While there are 100 billion TEL as total supply, 50 billion has been set aside for telecom partners and operators and spread over 10 years issued according to a laid out model mainly depending on demand. Since they are issued freely to mobile operators, telecom partners will be incentivized to sell them to their subscribers as they will receive all profits. The other 50% are locked in exchanges. To further curb volatility, there is an option of locking prices for a period—a very attractive feature. 
  • They recently partnered with Paga, a Nigerian mobile payment provider that transacts over $500 billion with over 800 merchants. Besides, a partnership with one of the Philippines leading payment app issuers could be on the cards thanks to their meeting with Kenneth Palacios, the Vice President of Consumer & Trade Wallets of PayMaya. PayMaya’s objective is to build a cashless ecosystem, allowing business owners to pay online in seconds via any credit, debit, or prepaid card, or using their PayMaya app.
  • Telcoin were recently approved to provide remittance services from Australia. That is massive and bodes with their plans of opening up various payment corridors from the Philippines where they received a BSP VCE License. 

For more fundamentals check our long format review here: https://cryptogems.com/telcoin-tel-send-payments-to-a-mobile-number-for-real-crypto-adoption/

I hope this was informative for you. Never miss crypto investor insights by subscribing to our mailing list.

Thanks for reading and good luck everyone!


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