Nexo Consults Citibank About Purchases As The Market Is In Upheaval
The cryptocurrency lending marketplace Nexo claims that because to its solid balance sheet, it can step in to help supply liquidity during the present market turbulence by purchasing the assets of failing crypto companies.
Nexo said in a blog post that it is currently consulting with banking behemoth Citigroup on the best way to take over the assets of bankrupt crypto companies so that investors can regain access to frozen monies.
The recent cryptocurrency meltdown, according to co-founder and managing partner Antoni Trenchev, reminds him of the Panic of 1907, when important Wall Street organizations were compelled to save other faltering businesses.
“This reminds me, quite frankly, of the 1907 bank panic where JP Morgan was forced to step in with his own funds and then rally all those guys that were solvent to fix the situation.”
Nexo claimed in the blog post that because it has always operated a sustainable business model without engaging in dangerous lending methods, it now holds a position of “unmatched stability” and is thus ideally positioned to step in and support floundering companies.
“The crypto space is about to enter a phase of mass consolidation which has already begun with the remaining solvent players, like Nexo, expressing their readiness to acquire the assets of companies with solvency issues in order to supply immediate liquidity to their clients and relief to the entire industry.”
Nexo has already spoken privately with a number of struggling crypto companies
Following news that another lending platform, Celsius, was experiencing a severe liquidity difficulty, Nexo officially indicated on June 13 that it was ready to buy some of the outstanding debts from Celsius.
On the same day, as concerns about significant DeFi contagion spread throughout the market, the value of Nexo’s native token, NEXO, fell by almost 25%, reaching a new yearly low of $0.61 per token.
Three days later, concerns about contagion were rekindled when investment company 3 Arrows Capital (3AC) failed to fulfill margin calls, resulting in $400M in losses from position liquidations. According to Nexo, it has no exposure to 3AC.
According to U.S.-based audit company Armanino, unlike many other troubled companies, Nexo has 100% liquidity to pay its $4.96 billion in debt commitments.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Nexo Consults Citibank About Purchases As The Market Is In Upheaval
The cryptocurrency lending marketplace Nexo claims that because to its solid balance sheet, it can step in to help supply liquidity during the present market turbulence by purchasing the assets of failing crypto companies.
Nexo said in a blog post that it is currently consulting with banking behemoth Citigroup on the best way to take over the assets of bankrupt crypto companies so that investors can regain access to frozen monies.
The recent cryptocurrency meltdown, according to co-founder and managing partner Antoni Trenchev, reminds him of the Panic of 1907, when important Wall Street organizations were compelled to save other faltering businesses.
“This reminds me, quite frankly, of the 1907 bank panic where JP Morgan was forced to step in with his own funds and then rally all those guys that were solvent to fix the situation.”
Nexo claimed in the blog post that because it has always operated a sustainable business model without engaging in dangerous lending methods, it now holds a position of “unmatched stability” and is thus ideally positioned to step in and support floundering companies.
“The crypto space is about to enter a phase of mass consolidation which has already begun with the remaining solvent players, like Nexo, expressing their readiness to acquire the assets of companies with solvency issues in order to supply immediate liquidity to their clients and relief to the entire industry.”
Nexo has already spoken privately with a number of struggling crypto companies
Following news that another lending platform, Celsius, was experiencing a severe liquidity difficulty, Nexo officially indicated on June 13 that it was ready to buy some of the outstanding debts from Celsius.
On the same day, as concerns about significant DeFi contagion spread throughout the market, the value of Nexo’s native token, NEXO, fell by almost 25%, reaching a new yearly low of $0.61 per token.
Three days later, concerns about contagion were rekindled when investment company 3 Arrows Capital (3AC) failed to fulfill margin calls, resulting in $400M in losses from position liquidations. According to Nexo, it has no exposure to 3AC.
According to U.S.-based audit company Armanino, unlike many other troubled companies, Nexo has 100% liquidity to pay its $4.96 billion in debt commitments.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
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