Nexo hires Citibank to advise on acquisitions during market turmoil
Crypto lending platform Nexo says that its sturdy steadiness sheet means it may well journey to the rescue to supply liquidity throughout the present market turmoil by buying the belongings of struggling crypto corporations.
In a weblog put up, Nexo announced that it’s presently receiving recommendation from banking big Citigroup on how finest to amass the belongings of bancrupt crypto corporations in order that buyers can regain entry to blocked funds.
Final week Antoni Trenchev, co-founder and managing accomplice at Nexo, instructed Bloomberg that the present crypto crash reminds him of the Panic of 1907 — the place main Wall Avenue establishments have 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 have been solvent to repair the state of affairs.”
Within the weblog put up, 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,” which means that it’s uniquely positioned to step into the breach to assist shore up struggling corporations:
“The crypto house is about to enter a part of mass consolidation which has already begun with the remaining solvent gamers, like Nexo, expressing their readiness to amass the belongings of corporations with solvency points in an effort to provide instant liquidity to their shoppers and reduction to the complete business.”
The put up revealed that Nexo has already made contact with numerous struggling crypto corporations in personal, providing up other ways to supply liquidity help.
On June 13, Nexo publicly introduced that it was ready to amass a few of Celsius’ excellent loans, following revelations that the man lending platform was struggling a serious liquidity disaster.
On the identical day, Nexo (NEXO) plunged practically 25%, falling to a brand new yearly low of $0.61 per token as fears of main decentralized finance (DeFi) contagion echoed by means of the market.
Three days later, contagion fears have 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 response to 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 value has stabilized and is presently buying and selling for $0.65, in response to information from TradingView.
