Crypto lending platform Nexo says its strong balance sheet means it can come to the rescue to provide liquidity during the current market turmoil by acquiring assets from crypto-fighting firms.

- Advertisement -

Blog mailNexo has announced that it is currently receiving guidance from banking giant Citigroup on how best to acquire the assets of insolvent crypto firms so investors can regain access to blocked funds.

- Advertisement -

Last week, Anthony Trenchev, co-founder and managing partner of Nexo, told Bloomberg that the current crypto crash reminds him of the panic of 1907, when major Wall Street institutions were forced to bail out other struggling firms.

“Frankly, it reminds me of the banking panic of 1907 when JP Morgan was forced to step in with their own funds and then rally all those guys who were solvent to fix the situation.”

- Advertisement -

In a blog post, Nexo boasted that it had always had a sustainable business model that did not use risky lending practices, with the result that it now has a position of “unsurpassed stability”, which means it has a unique opportunity to step into the gap. to help shore up struggling businesses.

“The crypto space is about to enter a phase of massive consolidation that has already started with the remaining solvent players such as Nexo expressing their willingness to acquire the assets of companies with solvency problems in order to immediately provide liquidity to their clients and help the entire industry.”

The post revealed that Nexo had already contacted a number of crypto firms privately, offering various ways to help with liquidity.

On June 13, Nexo publicly announced that it was ready to purchase some of Celsius’s outstanding loans after it became known that the partner lending platform was experiencing a severe liquidity crisis.

On the same day, Nexo’s own token, NEXO, fell nearly 25%, falling to a new yearly low of $0.61 per token, as fears of a major DeFi contagion hit the market.

Three days later, contagion concerns were resurrected as investment firm 3 Arrows Capital (3AC) failed to meet margin calls, suffering a $400 million loss from liquidating multiple positions. Nexo says it has nothing to do with 3AC.

Unlike many other struggling companies, Nexo has 100% liquidity to meet its needs. $4.96 billion in debtThis is reported by the American auditing company Armanino.

Celsius crisis exposes low liquidity problems in bear markets

After a major drawdown on June 13, NEXO price has stabilized and is currently trading at $0.65, according to TradingView data.