Nexo Speaks Out Breaking FUD Insolvency

Facing a flurry of FUDs that could soon face insolvency issues, Nexo co-founders and managing partners Metodiev and Antoni Trenchev voiced their denials during the latest AMA.

In an Ask Me Anything (AMA) video posted on YouTube on October 4, founders and managing partners Metodiev and Antoni Trenchev addressed community questions and recent rumors related to FUD that Nexo may soon face insolvency issues.

Faced with the question of whether Nexo was the next name after Voyager and Celsius, Metodiev made clear objections.

“Insolvency, bankruptcy are nowhere in Nexo’s reality, and we believe, we hope, we aspire, we’re working very hard to deliver a very strong and sustainable future for our users.”

Co-founder Kalin Metodiev stated that comparisons between Celsius, Voyager and the company are “very far from reality” and that the firm is focused on building in a sustainable way.

The rumors appear to have originated in part, from a claim in a September 26 cease and desist order from the Kentucky Department of Financial Institutions that Nexo’s “liabilities would exceed its assets” if its token holdings were excluded from the equation. 

Market analysts such as Dirty Bubble Media author Mike Burgersburg previously alleged that this company is facing insolvency risks because it holds the vast majority of NEXO’s token supply on its platform, similar to Celsius which owned more than 50% of its native token, CEL.

However, a spokesperson promptly denied the allegations to Cointelegraph, stating that the data they provided to Kentucky regulators was for one of the Nexo Group’s entities, and that “tokens represent less than 10% of the company’s total assets“.

In addition, Metodiev also shared that Nexo did not have any exposure to the failure of Terra (LUNA), nor did it have any of these loans to Three Arrows Capital.

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