Crypto lending platform Nexo says that its robust steadiness sheet means it will probably journey to the rescue to supply liquidity in the course of the present market turmoil by buying the property of struggling crypto companies.
In a weblog submit, Nexo announced that it’s at present receiving recommendation from banking large Citigroup on how greatest to amass the property of bancrupt crypto companies in order that traders can regain entry to blocked funds.
Final 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 Road establishments had 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 had been solvent to repair the scenario.”
Within the weblog submit, Nexo boasted that it had all the time run a sustainable enterprise mannequin that didn’t interact 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 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 amass the property of corporations with solvency points so as to provide instant liquidity to their shoppers and aid to all the trade.”
The submit revealed that Nexo has already made contact with a lot of struggling crypto companies in personal, providing up alternative 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 significant 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 via the market.
Three days later, contagion fears had 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 doesn’t have any publicity to 3AC.
In contrast to many different embattled companies, Nexo has 100% liquidity to fulfill its $4.96 billion worth of debt obligations, in accordance with United States-based audit agency Armanino.
Associated: Celsius’ disaster exposes issues of low liquidity in bear markets
Because the main drawdown on June 13, NEXO’s value has stabilized and is at present buying and selling for $0.65, in accordance with knowledge from TradingView.