- 17th May 2019
- Posted by: emy
- Category: Media
Recently we received this interesting question from one member of the Lendo Telegram community: “I’m very keen to hear how you see Lendo with respect to Nexo and Genesis Capital. Why will Lendo succeed in a world where there are already a couple of major players with large market shares?”
First we’d like to say that this is a new market and we believe there is plenty of room for companies offering different products. Even those that are similar, like Nexo and Lendo, offer different products. We believe in the consumer’s freedom to choose, and while we of course hope they will choose Lendo, we recognise the value of the products offered by others in the sector.
Genesis Capital has a different target market
Let’s start by saying that Genesis Capital serves a different market sector to that of Lendo. It is focused on institutional loans, whereas Lendo, while not excluding institutions, has always been more focused on consumer lending.
Nexo and Lendo: similar but different
Nexo has successfully launched its loans against crypto collateral and it has demonstrated that there is a consumer demand for this service. This is hugely encouraging for Lendo.
The Nexo token can be used on the platform as collateral for a loan, or to pay off a loan, which is similar to the way Lendo’s ELT token functions. Nexo also offers a card, as does Lendo.
Where Lendo diverges from Nexo is in the way Lendo is building an external ecosystem as we explain in this article: “Lendo’s ELT: a unique utility token in a healthy ecosystem”. We have been building ELT’s external ecosystem through partnerships with other companies in the finance industry, where ELT can be used in exchange for their goods and services.
We don’t fear the success of Genesis Capital and Nexo; they have earned it by delivering excellent products. We believe in the Lendo product and are confident that once it launches consumers will be attracted to use it due to the range of services it will provide.
Don’t forget, there are many conventional banks in the market – not just one. There are multiple car brands, and they share the market successfully. A good product with consumer demand always evolves and improves in a spirit of healthy competition, and all of that is great news for consumers.