NEXO HAS APPOINTED CITIBANK TO FIND ALTERNATIVES AND ADVICE ON DOWNMOVING CRYPTO FIRMS
Crypto Nexo's borrowing platform, says its strong balance means it can ride to the rescue to provide funding during the current turmoil in the market by acquiring assets of struggling crypto firms.
In a blog post, Nexo announced that it is currently receiving advice from the banking company Citigroup on how best to acquire the assets of non-profit crypto firms so that investors can recover the blocked money.
Last week Antoni Trenchev, founder and co-founder at Nexo, told Bloomberg that the current crypto crash reminded him of the Panic of 1907 - when large Wall St institutions were forced to pull out some struggling industries.
"This reminds me, without hesitation, of the 1907 bank panic in which JP Morgan was forced to intervene in his finances and then assemble all those people who could fix the situation."
On the blog site Nexo boasted that he had always had a stable business model that did not engage in risky lending practices, and as a result he was now in a position of “unparalleled stability,” which means he was put in a different position to get into crime. to help grow struggling firms.
“The crypto space is about to enter a massive process that has already begun with the remaining melting pot, like Nexo, expressing their willingness to acquire the assets of problem-solving companies to give their customers money quickly and freely. the whole industry. ”
The post revealed that Nexo has already contacted a number of struggling crypto companies privately, offering a variety of ways to provide financial assistance.
On June 13, Nexo publicly announced his intention to repay some of Celsius' outstanding debt, following the revelation that the lending platform was facing a major financial crisis.
On the same day the traditional Nexo token, NEXO dropped by about 25%, dropped to a low annual price of $ 0.61 per token as fears of a major DeFi infection echoed in the market.
Three days later, the fear of infection resurfaced as investment firm 3 Arrows Capital (3AC) failed to meet margin calls - losing $ 400M in liquidation. Nexo says it has no exposure to 3AC.
Unlike many other troubled companies, Nexo has 100% of the money to meet its $ 4.96 billion debt obligations, according to US auditing firm Armanino.
Since the sharp decline on June 13, the NEXO price has stabilized and is currently trading at $ 0.65, according to data from TradingView.