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Nexo Token Up 5% on Ethereum 'Smart Staking' Launch

The price surge comes on the heels of news that Nexo's Earn Interest Product has been suspended in eight U.S. states.

2 min read
Image: Nexo

The native token of crypto lending platform Nexo has jumped by around 5.3% following the launch of its Ethereum Smart Staking product.

Nexo's Ethereum Smart Staking enables users to swap ETH for Nexo Staked ETH (NETH) and receive staking rewards of between 4% and 12% APY, paid out in NETH. Nexo is one of 22 investors in Decrypt.

At its current price of $0.66, per CoinGecko, NEXO is up around 2% on the week, though it has fallen by a third from its price of $1 at the start of November and has slipped over 83% from its all-time high of $4.07 recorded in May 2021.

The NEXO token gives platform users different advantages, such as better rates for lending and borrowing.

Nexo phases out US service

On Tuesday, the crypto lender announced that it was suspending access to its Earn Interest Product in eight U.S. states following 18 months of dialogue with state and federal regulators.

Nexo claimed in a statement that the U.S. “refuses to provide a path for enabling blockchain businesses.”

Nexo's Earn Interest Product is now discontinued in Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington, while U.S. customers can no longer sign up for the product—although access to accounts and withdrawals remains unaffected.

It's been a rocky few months for crypto lending services, with Nexo rivals BlockFi, Voyager, and Celsius all declaring bankruptcy following the collapse of Terra earlier in the year and the downfall of crypto exchange FTX.

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