Nexo hires Citibank to advise on acquisitions during market turmoil

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Crypto lending platform Nexo says its strong balance sheet means it can bail out to provide liquidity during the current market turmoil by acquiring distressed crypto assets.

In a blog post, Nexo announced that it is currently receiving advice from banking giant Citigroup on how best to obtain the assets of distressed crypto firms so that investors can regain access to blocked funds.

Last week, Anthony Trenchev, co-founder and managing partner at Nexo, told Bloomberg that the current cryptocurrency meltdown reminds him of the Panic of 1907 — in which major Wall Street institutions were forced to bail out other struggling companies:

“It reminds me, quite frankly, of the bank panic of 1907 in which JPMorgan was forced to step in with its own money and then muster all those people who were able to fix the situation.”
In the blog post, Nexo boasted that it had always run a sustainable business model that did not engage in risky lending practices, and as a result, it now occupies a position of “unparalleled stability,” which means it is uniquely positioned to step in with a hack to help support distressed businesses. :

“The crypto space is about to enter the mass consolidation phase that has already begun with the remaining solvent players, such as Nexo, expressing their willingness to acquire the assets of companies with solvency issues in order to provide immediate liquidity to their customers and relief to the entire industry.”
The post revealed that Nexo has already made contact with a number of struggling crypto companies in the private sector, offering various ways to provide liquidity assistance.

On June 13, Nexo publicly announced that it was ready to take out some outstanding Celsius loans, after revealing that the associate lending platform was experiencing a major liquidity crunch.

On the same day, Nexo (NEXO) plummeted nearly 25%, dropping to a new annual low of $0.61 per token as fears of a decentralized finance (DeFi) contagion echoed in the market.

Three days later, contagion fears were reignited as investment firm 3 Arrows Capital (3AC) failed to meet margin calls – suffering a $400 million loss in liquidations across multiple positions. Nexo says it has no exposure to 3AC.

Unlike many other embattled companies, Nexo has 100% liquidity to meet $4.96 billion in debt obligations, according to US-based audit firm Armanino.

Related Topics: Celsius Crisis Reveals Low Liquidity Problems in Bear Markets

Since the significant pullback on June 13, the price of NEXO has stabilized and is currently trading at $0.65, according to TradingView data.

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