Nexo Taps Citibank for Assistance on Potential Acquisitions as Crypto Markets Struggle
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.
Consolidating the space so it can grow.@Nexo is working with @Citi on the strategic provision of liquidity to those that need it so that their clients who got hurt can recoup their funds. Financially strong, Nexo feels an obligation to lead the charge.https://t.co/eVScWv95tb
— Nexo (@Nexo) June 22, 2022
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.