Crypto lending platform Nexo says that its robust stability sheet means it could actually journey to the rescue to supply liquidity throughout the present market turmoil by buying the property of struggling crypto corporations.
In a weblog submit, Nexo announced that it’s at present receiving recommendation from banking big Citigroup on how finest to accumulate the property of bancrupt crypto corporations in order that traders can regain entry to blocked funds.
Final week Antoni Trenchev, co-founder and managing associate at Nexo, informed Bloomberg that the present crypto crash reminds him of the Panic of 1907 — the place main Wall Road establishments had been compelled to bail out different struggling corporations:
“This jogs my memory, fairly frankly, of the 1907 financial institution panic the place JP Morgan was compelled to step in along with his personal funds after which rally all these guys that had been solvent to repair the scenario.”
Within the weblog submit, Nexo boasted that it had at all times run a sustainable enterprise mannequin that didn’t have interaction in dangerous lending practices, in consequence, it now occupies a place of “unmatched stability,” that means that it’s uniquely positioned to step into the breach to assist shore up struggling corporations:
“The crypto area is about to enter a part of mass consolidation which has already begun with the remaining solvent gamers, like Nexo, expressing their readiness to accumulate the property of firms with solvency points in an effort to provide quick liquidity to their purchasers and aid to your entire business.”
The submit revealed that Nexo has already made contact with quite a few struggling crypto corporations in non-public, providing up alternative ways to supply liquidity help.
On June 13, Nexo publicly introduced that it was ready to accumulate a few of Celsius’ excellent loans, following revelations that the guy lending platform was struggling a significant liquidity disaster.
On the identical day, Nexo (NEXO) plunged almost 25%, falling to a brand new yearly low of $0.61 per token as fears of main decentralized finance (DeFi) contagion echoed via the market.
Three days later, contagion fears had been reignited as funding agency 3 Arrows Capital (3AC) failed to satisfy margin calls — struggling a lack of $400M in liquidations throughout a number of positions. Nexo says it doesn’t have any publicity to 3AC.
Not like many different embattled corporations, Nexo has 100% liquidity to satisfy its $4.96 billion worth of debt obligations, in keeping with United States-based audit agency Armanino.
Associated: Celsius’ disaster exposes issues of low liquidity in bear markets
For the reason that main drawdown on June 13, NEXO’s worth has stabilized and is at present buying and selling for $0.65, in keeping with knowledge from TradingView.
