Nexo hires Citibank to advise on acquisitions throughout market turmoil

Crypto lending platform Nexo, says that its sturdy stability sheet means it will probably journey to the rescue to offer liquidity in the course of the present market turmoil by buying the property of struggling crypto companies. 

In a weblog submit, Nexo introduced that it’s at present receiving recommendation from banking large Citigroup on how greatest to accumulate the property of bancrupt crypto companies 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 St establishments have been pressured to bail out different struggling companies.

“This jogs my memory, fairly frankly, of the 1907 financial institution panic the place JP Morgan was pressured to step in along with his personal funds after which rally all these guys that have 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,” which 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 accumulate the property of corporations with solvency points in an effort to provide speedy liquidity to their shoppers and reduction to the whole trade.”

The submit revealed that Nexo has already made contact with plenty of 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 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’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 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 does not have any publicity to 3AC.

In contrast to many different embattled companies, Nexo has 100% liquidity to satisfy its $4.96 billion price of debt obligations, in response to U.S.-based audit agency Armanino.

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

Because the main drawdown on June 13, NEXO’s worth has stabilised and is at present buying and selling for $0.65, in response to knowledge from TradingView.

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