Nexo plans to seek advice on acquisitions from struggling crypto firms even as it has 100% liquidity to meet its debt obligations.
Nexo, a cryptocurrency lending platform, claims that its robust balance sheet allows it to ride to the rescue and offer liquidity during the current market upheaval by acquiring the assets of failing crypto enterprises.
Nexo revealed in a blog post that it is presently obtaining assistance from banking behemoth Citigroup on how to best buy the assets of bankrupt crypto businesses so that investors can regain access to frozen monies.
Antoni Trenchev, co-founder and managing partner of Nexo, told Bloomberg last week that the current crypto meltdown reminded him of the Panic of 1907 when large Wall Street institutions were compelled to bail out struggling enterprises.
“This reminds me, quite frankly, of the 1907 bank panic where JP Morgan was forced to step in with his funds and then rally all those guys that were solvent to fix the situation.”
Nexo boasted in the blog post that it has always run a sustainable business model that does not engage in dangerous lending methods, and as a result, it now holds a position of “unmatched stability,” which means it is ideally equipped to step into the gap to help shore up struggling enterprises.
“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 to supply immediate liquidity to their clients and relief to the entire industry.”
According to the post, Nexo has already established private contact with several struggling crypto enterprises, suggesting various options to provide liquidity support.
Nexo openly indicated on June 13 that it was prepared to acquire part of Celsius’ existing debts, following reports that the fellow lending platform was experiencing significant financial difficulty.
On the same day, Nexo’s native token, NEXO, fell roughly 25%, reaching a new yearly low of $0.61 per token as market participants worried about severe DeFi contagion.
Three days later, fears of contagion were renewed when investment firm Three Arrows Capital (3AC) failed to pay margin calls, resulting in a $400 million loss in liquidations across various assets. Nexo claims it has no exposure to 3AC.
According to the audit firm Armanino, Nexo has 100 percent liquidity to satisfy its $4.96 billion in debt obligations, unlike many other troubled companies.
According to TradingView statistics, NEXO’s price has stabilized from the severe drop on June 13 and is now trading at $0.65.
