Nexo hired Citibank to advise on acquisitions during the recent market downturn and also said its strong balance sheet means it can provide liquditiy by acquiring assets of struggling crypto companies so let’s read more today in our latest cryptocurrency news.
Lending platform Nexo hired Citibank to advise on acquisitions during the latest market downturn and said that it is able to ride the rescue wave and provide liquidity during the market turmoil by acquiring the assets of the struggling crypto companies. Nexo announced that it will receive advice from CitiGroup on how to acquire the asset of insolvent crypto companies so that investors can regain access to the blocked funds.
Last Week, Antoni Trenchev the co-founder of Nexo said that the current crypto crash reminds him of the Panic of 1907 when most Wall Street institutions were forced to bail out other struggling companies:
“This reminds me, quite frankly, of the 1907 bank panic where JP Morgan was forced to step in with his own funds and then rally all those guys that were solvent to fix the situation.”
In the blog post Nexo boasted that it always runs a sustainable busienss model which didn’t engage in risky lending practices and now occupies a position of the unmatched stability whcih means that it is uniquely placed to step into the breach and help shore up the struggling companies:
“The crypto space is about to enter a phase of mass consolidation which has already begun with the remaining solvent players, like Nexo, expressing their readiness to acquire the assets of companies with solvency issues in order to supply immediate liquidity to their clients and relief to the entire industry.”
The post revealed that Nexo already made contact with a number of struggling crypto companies in private and offered more ways to provide liquditiy assistance. Nexo announced that it was prepared to acquire some of the Celsius outstanding loans after revelations that the lending platform suffered a majority liquditiy crisis. On the same day, Nexo’s NEXO token dropped 25% and fell to a new yearly low of $0.61 per token with fears of major DEFI contagion echoing through the market. Three days later, the contagion fears were reignited as the investment company Three Arrows Capital failed to meet the margin calls and suffered a loss of $400 million in liquidation.
Nexo said it doesn’t have exposure to Three Arrows Capital and unlike most embattled companies, Nexo has 100% liquidity to meet the $4.96 billion worth of debt obligations since the major drawdown on Juen 13, Nexo’s price stabilized and it is trading for $0.65.
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