Crypto lending platform Nexo states that it is strong balance sheet means it may ride towards the save to supply liquidity throughout the market turmoil by obtaining the assets of battling crypto firms.
Inside a blog publish, Nexo announced that it’s presently receiving advice from banking giant Citigroup about how best to get the assets of insolvent crypto firms to ensure that investors can get back use of blocked funds.
A week ago Antoni Trenchev, co-founder and managing partner at Nexo, told Bloomberg the current crypto crash reminds him from the Panic of 1907 — where major Wall Street institutions were made to bail out other battling firms:
“This jogs my memory, to be honest, from the 1907 bank panic where JP Morgan was made to part of together with his own funds after which rally all individuals guys which were solvent to repair the problem.”
Within the blog publish, Nexo boasted it had always operate a sustainable business design that didn’t participate in dangerous lending practices, consequently, it now occupies a situation of “unmatched stability,” meaning that it’s distinctively placed to walk into the breach to assist shore up battling firms:
“The crypto space is going to enter a phase of mass consolidation that has already commenced using the remaining solvent players, like Nexo, expressing their readiness to get the assets of companies with solvency issues to be able to supply immediate liquidity for their clients and relief towards the entire industry.”
The publish says Nexo has made connection with numerous battling crypto firms privately, offering up new ways to provide liquidity assistance.
On June 13, Nexo openly announced it had become prepared to get a number of Celsius’ outstanding loans, following revelations the fellow lending platform was suffering a significant liquidity crisis.
On the day that, Nexo (NEXO) stepped nearly 25%, falling to a different yearly low of $.61 per token as fears of major decentralized finance (DeFi) contagion echoed with the market.
72 hours later, contagion fears were reignited as investment firm 3 Arrows Capital (3AC) unsuccessful to satisfy margin calls — suffering a loss of revenue of $400M in liquidations across multiple positions. Nexo states it does not have any contact with 3AC.
Unlike a number of other embattled firms, Nexo has 100% liquidity to satisfy its $4.96 billion price of debt obligations, based on U . s . States-based audit firm Armanino.
Related: Celsius’ crisis exposes problems of low liquidity in bear markets
Because the major drawdown on June 13, NEXO’s cost has stabilized and it is presently buying and selling for $.65, based on data from TradingView.
