The current bear market has caused many cryptocurrency-related companies to reel. With the Luna fiasco and assets plummeting to near levels not seen in 2 years, the cryptocurrency mainstays are struggling to stay afloat – either freezing hiring, laying off staff entirely, or freezing exchanges and withdrawals “to protect consumers.”
However, not all companies are feeling the effects of the crypto winter. The Binance team, for example, has increased the number of hirings.
In terms of DeFi, Nexo is looking to capture the market by refinancing other DeFi platforms that are currently floating in turbulent waters.
Better Planning, Better Business
Nexo recently sent a letter of intent to Celsius declaring its readiness to acquire the latter’s relevant assets in order to save the platform. Now, Nexo has released a statement on its blog outlining the reasons why it has weathered the storm better than some competitors, as well as its intention to capitalize on its mistakes.
Combining space so it can grow.@nexus work with @City about strategically providing liquidity to those in need so that their affected clients can recover their funds. Being financially strong, Nexo feels compelled to take responsibility.https://t.co/eVScWv95tb
— Nexus (@Nexus) June 22, 2022
In a public statement came out Nexo, a spokesperson, stated that the release of the aforementioned LOI was an exceptional decision to draw attention. The company said it has expanded similar olive branches to other platforms behind closed doors, promising future updates at a more appropriate date.
“Following a public announcement of our willingness to help stabilize the industry, Nexo is currently in talks with other major crypto companies to develop a larger relief plan for the blockchain space. As the situation is dynamic and sensitive, we will update you as soon as possible.”
Citibank came on board
To further insulate itself from the ongoing situation, Nexo has enlisted experts from Citibank to help in its mission to help the affected industry, “just like JP Morgan did over a century ago.”
Nexo also laid out reasons why it can take charge and start expanding its influence in the DeFi space. Among them, Nexo highlighted its strict collateral policy, which is reportedly much stricter than others, and its $775 million insurance package guaranteed by legendary banking institutions such as Lloyd’s.
Attention was also raised to asset security at Nexo, with the report saying that the firm had never been hacked or otherwise exploited for either these clients or funds.
Overall, Nexo seems to be in a good position to capitalize on the current situation. However, the extent of consolidation is still unclear and its long-term implications remain uncertain.
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Credit : cryptopotato.com