Because the crypto market has joined “a condition of fear,” and “nobody can say” if the bottom has already been behind us, major crypto loan provider Nexo (NEXO) is eyeing options to get troubled companies, based on its co-founders.
Speaking inside a livestreamed AMA (ask me anything) session on Tuesday, Kalin Metodiev, the co-founder and managing partner from the firm, stated the marketplace has moved from what he referred to as an “an excessively positive state” to “a condition of fear.”
“We believe there’s some volatility coming still, and no-one can tell whether this is actually the bottom,” Metodiev stated, warning investors they should “definitely buckle up” to be ready for whatever comes next.
Nexo is really a crypto lending and borrowing company operating having a similar business design as Celsius (CEL), the troubled major crypto loan provider that lately stopped all customer withdrawals because of “extreme market conditions.”
Commenting around the situation surrounding Celsius and also the broader industry, Metodiev stated “some companies go into difficulties for various reasons,” while adding that Nexo has initiated unspecified “conversations” with a few of individuals troubled companies.
He stressed that Nexo is just employed by the betterment of the profession, which does what it really can in connection with this.
“We will always be very open about our dedication to the development from the ecosystem […] we’re always thinking about supporting companies, partnering [with] projects and teams which have a obvious vision of how they may create a cutting-edge product that’ll be required through the blockchain community,” the Nexo co-founder stated.
He added that certain way this dedication to companies within the ecosystem might be manifested is thru a possible “acquisition of song from the business or even the entire business.”
As formerly reported, Nexo earlier this year extended a deal to Celsius to get “all or a part of Celsius’ qualifying, outstanding collateralized loan receivables.”
Consolidations and sustainability
Speaking within the same AMA session, Antoni Trenchev, Nexos’ other co-founder and managing partner, stated he sees a wave of “consolidations” happening within the crypto industry moving forward. The event will probably take shape much like how acquisitions and consolidations have formed the standard banking industry through the years, he stated.
This can “hopefully be for that betterment from the space,” Trenchev stated.
Further, their Chief executive officer also addressed an issue about whether Nexos’ “high yields” are sustainable in the present market atmosphere without entering much detail about how yields are generated.
“In to pay out 6 %, we must get out there and make a minimum of eight to really make it all work […],” Trenchev stated, noting that “this all dates back towards the sustainability from the model.”
“At the finish during the day, it’s better to possess a lower yield however a safer product than prospects of double-digit yields that can lead to one hundredPercent loss,” Trenchev taken care of immediately the issue by saying.
Lastly, requested whether Nexo may potentially survive a 2-year bear market, Metodiev accepted that “it’s difficult inside a bear market,” and stated “I hope the bear market won’t latter years.”
Either in situation, Nexo has “a quite strong budget,” Metodiev stated without indicating.
At 15:04 UTC, NEXO traded at USD .698 and it was lower 3% per day. The cost can also be lower 7% per week and 48% inside a month.
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Find out more:
– Voyager Digital Safeguards Line Of Credit from Alameda, May Send Three Arrows a Notice of Default
– SEC’s Peirce States Crypto’s Insufficient ‘Bailout Mechanism’ Is really a Strength FTX Chief executive officer like a ‘White Knight’
– CEL Token Soars as Celsius Shareholder Proposes Recovery Plan, Celsius Pays Compound
– Celsius Apparently Unlikely to obtain Bailout Money from Investors
