Nexo Offers A Long-Term Solution To The Current Bearish Frenzy In The Crypto Market
- Nexo suggests possible relief plans to protect crypto investors and market leaders. The company plans on working with Citibank to achieve this objective.
The current happenings in the crypto space are similar to what happened in the traditional finance sector in its 100-year existence. However, the crypto lending platform, Nexo, believes it has a long-term solution to this problem. The Nexo team believes its solution will restore public confidence in the crypto sector.
Also, Nexo claims that its solution will help investors who lost their investments in recent crypto market crashes to recover fully. Nexo released a detailed blog post analyzing the problem of the current crypto market and its long-term solution.
Nexo and the Master Plan
According to Nexo, the crash of the terra network (especially the de-pegging of its stablecoin) and the subsequent volatility triggered the current panic in the crypto space. Also, a leading crypto hedge fund (Three Arrows Capital, 3AC) has been struggling with the debt it owes most of its customers.
Nexo’s blog post claims that the competition to offer the highest yields in crypto lending is the leading cause of several un-collateralized loans threatening to crash the crypto space. Nexo plans to acquire assets of crypto firms with insolvency issues.
Nexo argues that the crypto market’s lack of support from the federal reserve means that the fed won’t inject liquidity into the crypto space. Thus, Nexo’s best solution to this current crypto turmoil is for companies without insolvency issues to start acquiring the insolvent ones.
Nexo claims that it is one of such crypto companies without insolvency issues and has zero risk exposure to the current 3AC liquidity problems. Nexo added that these acquisitions would push the crypto space into a phase of mass consolidation.
The blog post claims that Nexo has been in discussion with several crypto lending firms. These firms will provide various solutions for these crypto firms with insolvency issues. Recently, Nexo submitted an official letter of intent to the celsius network to enable the latter to solve its withdrawal issues.
Many industry players criticized Nexo for going public with its assistance for celsius. However, Nexo argued that its reason for publicizing it intends to push the celsius management to make a quick decision.
With Proper Advisors
Nexo is also in partnership with Citibank to ensure that it works with world-class financial advisors on its acquisition deals. According to Nexo, once investors can access their funds on these troubled platforms, their trust in the space will increase significantly.
Nexo claims to have a solid financial position to execute these acquisition deals. The blog post also states that Nexo is discussing with other top crypto firms to create a bigger relief plan for the blockchain industry.
Nexo claims that it has survived the current crypto winter thus far because of its founding guidelines in finance and blockchain. Also, its team has always ensured that it runs the business in a self-sustainable and profitable manner.