KR1, a crypto and blockchain asset investment company, today announced that it has sold 35,128.30 NXM tokens in the Nexus Mutual project at an average price of USD $14.03 per NXM token, generating proceeds of USD $492,991.85. These NXM tokens were acquired at an average price of USD $2.24 per NXM token during the project’s seed round and after the project’s mainnet launch.

Nexus Mutual is recreating the mutual insurance company model on a global scale, bringing people together to share risk, without the need for an insurance company. Built on Ethereum, the NXM project currently offers cover for an array of popular smart contracts and is becoming a crucially important element in the rapidly expanding Ethereum DeFi ecosystem.

Over the last few months, Nexus has seen surging demand, and has now written over USD $16.39 million worth of cover since launch. Nexus is also continuously expanding its capacities, having scaled the capital pool to USD $7.64 million in funds, and signing up more than 1,000 members since its inception.

The NXM token is priced through a formula that takes into account important parameters relating to the underlying capital pool and performance of the mutual, which maintains capital efficiency and guarantees the highest standards of solvency. Due to a rapid influx of funds that resulted in excess capital in Nexus’ pool, the NXM price spiked to levels that strongly encouraged redemptions.

KR1 continues to hold more than three-quarters of its initial Nexus position and intends to potentially repurchase some NXM tokens, after the pricing and capital pool dynamics return to normal levels.

George McDonaugh, Managing Director and Co-Founder of KR1, commented:

“We’re delighted to have successfully backed another major DeFi project. We were the first brave money in at the seed round in 2017, when only a few saw the potential in Nexus, and long before the ecosystem had even taken shape.

“The special talent and background of Nexus Mutual’s founder, Hugh Karp, as well as the team’s hard work and dedication, have placed them at the heart of this new economy. Nexus’ smart contract cover is a perfect example of successful product-market fit, which is a rare occurrence in the yet nascent crypto world.

“Ethereum has given birth to this new era of disruptive composable financial applications and we have been a major early investor in ground-breaking projects including Acala, Argent, Melon, Union and Vega Protocol, to name a few. In stark contrast to the low level of developer activity on Bitcoin, the burgeoning DeFi world is testament to the Ethereum community’s strong willingness to experiment.”

CryptoNinjas » Crypto fund KR1 partial sale in Nexus Mutual nets $493K for 5x ROI

Similar to Notcoin - Blum - Airdrops In 2024

origin »

219 +