Nexo hires Citibank to advise on acquisitions during market turmoil

Nexo hires Citibank to advise on acquisitions throughout market turmoil

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Crypto lending platform Nexo, says that its robust steadiness sheet means it could journey to the rescue to offer liquidity throughout the present market turmoil by buying the property of struggling crypto companies. 

In a weblog publish, Nexo introduced that it’s at present receiving recommendation from banking big Citigroup on how greatest to amass the property of bancrupt crypto companies in order that buyers can regain entry to blocked funds.

Last week Antoni Trenchev, co-founder and managing companion at Nexo, advised Bloomberg that the present crypto crash reminds him of the Panic of 1907 — the place main Wall St establishments have been compelled to bail out different struggling companies.

“This jogs my memory, fairly frankly, of the 1907 financial institution panic the place JP Morgan was compelled to step in together with his personal funds after which rally all these guys that have been solvent to repair the scenario.”

In the weblog publish Nexo boasted that it had all the time run a sustainable enterprise mannequin that didn’t have interaction in dangerous lending practices, because of this 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 companies.

“The crypto house is about to enter a section of mass consolidation which has already begun with the remaining solvent gamers, like Nexo, expressing their readiness to amass the property of corporations with solvency points in an effort to provide fast liquidity to their shoppers and reduction to your complete trade.”

The publish revealed that Nexo has already made contact with numerous struggling crypto companies in non-public, providing up other ways to offer 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’s native token, NEXO plunged practically 25%, falling to a brand new yearly low of $0.61 per token as fears of main DeFi contagion echoed by way of the market.

Three days later, contagion fears have been reignited as funding agency 3 Arrows Capital (3AC) failed to fulfill margin calls — struggling a lack of $400M in liquidations throughout a number of positions. Nexo says it does not have any publicity to 3AC.

Unlike many different embattled companies, Nexo has 100% liquidity to fulfill its $4.96 billion price of debt obligations, in line with U.S.-based audit agency Armanino.

Related: Celsius’ disaster exposes issues of low liquidity in bear markets

Since the most important drawdown on June 13, NEXO’s value has stabilised and is at present buying and selling for $0.65, in line with information from TradingView.



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() Crypto lending platform Nexo, says that its robust steadiness sheet means it could journey to the rescue to offer liquidity throughout the present market turmoil by buying the property of struggling crypto companies.  In a weblog publish, Nexo introduced that it’s at present receiving recommendation from banking big Citigroup on how greatest to amass…