Nexo Taps Citibank for Assistance on Potential Acquisitions as Crypto Markets Struggle

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The cur­rent bear mar­ket has left many cryp­to-relat­ed busi­ness­es reel­ing. Between the Luna fias­co and assets drop­ping close to lev­els not seen in 2 years, cryp­to main­stays are strug­gling to stay afloat – either by freez­ing hir­ing, cut­ting staff loose alto­geth­er, or freez­ing exchanges and with­drawals “to pro­tect consumers.”

How­ev­er, not all com­pa­nies are feel­ing the effects of the cryp­to win­ter. The team at Binance, for instance, has upped its hir­ing spree.

And on the DeFi side of things, Nexo is look­ing to cor­ner the mar­ket by refi­nanc­ing oth­er DeFi plat­forms cur­rent­ly nav­i­gat­ing tur­bu­lent waters.

Better Planning, Better Business

Recent­ly, Nexo had sent a let­ter of intent to Cel­sius, stat­ing the will­ing­ness to pur­chase the latter’s qual­i­fy­ing assets to bail the plat­form out. Now, Nexo has released a state­ment on its blog, out­lin­ing the rea­sons why it man­aged to weath­er the storm bet­ter than some com­peti­tors – as well as the intent to cap­i­tal­ize on their mistakes.

In the pub­lic state­ment released by Nexo, the spokesper­son stat­ed that going pub­lic with the afore­men­tioned LOI was an excep­tion­al deci­sion meant to gar­ner atten­tion. The com­pa­ny stat­ed it had extend­ed sim­i­lar olive branch­es to oth­er plat­forms behind closed doors, promis­ing future updates at a more suit­able date.

“Fol­low­ing the pub­lic state­ment of our readi­ness to help sta­bi­lize the indus­try, Nexo is now in ongo­ing talks with oth­er big cryp­to com­pa­nies for the devel­op­ment of a larg­er relief plan for the blockchain space. As the sit­u­a­tion is both dynam­ic and sen­si­tive, we will update you as soon as possible.”

Citibank Brought Onboard

In order to fur­ther insu­late itself from the ongo­ing sit­u­a­tion, Nexo has tapped experts from Citibank to assist in its mis­sion to pro­vide relief to a bat­tered indus­try, “just like the charge led by J.P Mor­gan over a cen­tu­ry ago.”

Nexo fur­ther out­lined the rea­sons why it is able to step up to the plate and begin extend­ing its influ­ence across the DeFi space. Among these, Nexo high­light­ed its strict col­lat­er­al­iza­tion pol­i­cy – report­ed­ly much more strin­gent than that of oth­ers, and its insur­ance pack­age worth $775 mil­lion, under­writ­ten by sto­ried bank­ing insti­tu­tions such as Lloyd’s.

The atten­tion to asset secu­ri­ty at Nexo was also brought up, with the release stat­ing that the firm had nev­er been hacked or oth­er­wise exploit­ed for either client data or funds.

Over­all, Nexo seems to be in a good posi­tion to cap­i­tal­ize on the cur­rent sit­u­a­tion. How­ev­er, the extent of the con­sol­i­da­tion is still unclear – and the long-last­ing effects it may have remains uncertain.

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