Nexo hires Citibank to advise on acquisitions during market turmoil

Crypto lending platform Nexo says that its sturdy stability sheet means it might probably trip to the rescue to supply liquidity throughout the present market turmoil by buying the property of struggling crypto corporations. 

In a weblog publish, Nexo announced that it’s at present receiving recommendation from banking large Citigroup on how finest to amass the property of bancrupt crypto corporations in order that traders can regain entry to blocked funds.

Final week Antoni Trenchev, co-founder and managing companion at Nexo, informed Bloomberg that the present crypto crash reminds him of the Panic of 1907 — the place main Wall Avenue establishments have been pressured to bail out different struggling corporations:

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

Within the weblog publish, Nexo boasted that it had at all times run a sustainable enterprise mannequin that didn’t interact in dangerous lending practices, in consequence, 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 corporations:

“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 as a way to provide speedy liquidity to their shoppers and aid to the complete trade.”

The publish revealed that Nexo has already made contact with numerous struggling crypto corporations in non-public, providing up other ways to supply liquidity help.

On June 13, Nexo publicly announced that it was prepared to amass a few of Celsius’ excellent loans, following revelations that the guy lending platform was suffering a major liquidity crisis.

On the identical day, Nexo (NEXO) plunged nearly 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 meet 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 fulfill its $4.96 billion worth of debt obligations, in response to United States-based audit agency Armanino.

Associated: Celsius’ crisis exposes problems 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 response to knowledge from TradingView.