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Nexo is asking Citibank for support with potential acquisitions as crypto markets struggle

Nexo is asking Citibank for support with potential acquisitions as crypto markets struggle, Crypto Trading News
The current bear market has shaken many crypto-related businesses. Between the Luna fiasco and assets falling to levels not seen in 2 years, crypto mainstays are struggling to stay afloat – either by freezing hiring, cutting staff altogether, or freezing exchanges and payouts , “to protect consumers”.

However, not all companies are feeling the effects of the crypto winter. The Binance team, for example, has ramped up their hiring frenzy.

And on the DeFiside, Nexo is attempting to enter the market by refinancing other DeFi platforms currently navigating turbulent waters.

Better planning, better business

Recently, Nexo had a letter of intent Celsius sent, in which it indicated its willingness to buy the latter’s qualifying assets in order to save the platform. Now, Nexo has posted a statement on its blog outlining the reasons why the company has managed to weather the storm better than some rivals – as well as its intention to capitalize on its mistakes.

Consolidation of space to allow it to grow. @Nexo works with @Citi to strategically provide liquidity to those who need it so their injured clients can recover their funds. Nexo is financially strong and committed to leading the charge.

— Nexo (@Nexo) June 22, 2022

In the public statement released by Nexo, the spokesperson stated that the IPO with the above LOI was an extraordinary decision to attract attention. The company said it had rolled out similar olive branches to other platforms behind closed doors, promising future updates at a more opportune time.

“Following the public declaration of our willingness to help stabilize the industry, Nexo is now in ongoing discussions with other major crypto companies to develop a larger relief plan for the industry Blockchain-Area. As the situation is both dynamic and sensitive, we will update you as soon as possible.”

Citibank brought on board

To further isolate itself from the ongoing situation, Nexo has tapped experts at Citibank to assist them in their mission to help an ailing industry “just like the prosecution led by JP Morgan over a century ago.”

Nexo further explained the reasons why it is able to come out on top and expand its influence in the DeFi space. Among them, Nexo highlighted its strict collateralization policy — reportedly much stricter than that of other companies — and its $775 million insurance package, which was underwritten by reputable banking institutions like Lloyd’s.

Attention has also been drawn to asset security at Nexo, with the press release stating that the company has never been hacked or otherwise exploited for customer data or funds.

Overall, Nexo appears to be in a good position to capitalize on the current situation. However, the extent of the consolidation is still unclear – and the potential long-term impact remains uncertain.

Source: Crypto News Deutsch

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