Because the crypto market has entered “a state of worry,” and “no person can say” whether or not the underside is already behind us, main crypto lender Nexo (NEXO) is eyeing potentialities to amass troubled firms, in response to its co-founders.
Talking in a livestreamed AMA (ask me something) session on Tuesday, Kalin Metodiev, the co-founder and managing associate of the agency, mentioned the market has now moved from what he described as an “an excessively optimistic state” to “a state of worry.”
“We consider there’s some volatility on the horizon nonetheless, and no person can say whether or not that is the underside,” Metodiev mentioned, warning traders that they need to “positively buckle up” to be ready for no matter comes subsequent.
Nexo is a crypto lending and borrowing firm working with an analogous enterprise mannequin as Celsius (CEL), the troubled main crypto lender that not too long ago halted all buyer withdrawals resulting from “excessive market situations.”
Commenting on the state of affairs surrounding Celsius and the broader business, Metodiev mentioned “some firms have gone into hassle for numerous causes,” whereas including that Nexo has initiated unspecified “conversations” with a few of these troubled firms.
He pressured that Nexo is barely working for the betterment of the business, and that it does what it could on this regard.
“Now we have all the time been very open about our dedication to the expansion of the ecosystem […] we’re all the time concerned about supporting firms, partnering [with] tasks and groups which have a transparent imaginative and prescient of how they will create an modern product that will probably be demanded by the blockchain group,” the Nexo co-founder mentioned.
He added that a technique this dedication to firms within the ecosystem may very well be manifested is thru a possible “acquisition of sure components of the enterprise or all the enterprise.”
As beforehand reported, Nexo earlier this month prolonged a proposal to Celsius to amass “all or a part of Celsius’ qualifying, excellent collateralized mortgage receivables.”
Consolidations and sustainability
Talking in the identical AMA session, Antoni Trenchev, Nexos’ different co-founder and managing associate, mentioned that he sees a wave of “consolidations” taking place within the crypto business going ahead. The event is prone to take form much like how acquisitions and consolidations have formed the normal banking business over time, he mentioned.
It will “hopefully be for the betterment of the house,” Trenchev mentioned.
Additional, the corporate’s CEO additionally addressed a query about whether or not Nexos’ “excessive yields” are sustainable within the present market setting with out going into a lot element on how yields are generated.
“With the intention to pay you six %, we have now to exit and make at the very least eight to make all of it work […],” Trenchev mentioned, noting that “this all goes again to the sustainability of the mannequin.”
“On the finish of the day, it’s higher to have a decrease yield however a safer product than prospects of double-digit yields that may end in a 100% loss,” Trenchev responded to the query by saying.
Lastly, requested whether or not Nexo might probably survive a two-year bear market, Metodiev admitted that “it’s not enjoyable in a bear market,” and mentioned “I hope the bear market won’t final two years.”
In both case, Nexo has “a really sturdy monetary place,” Metodiev mentioned with out specifying.
At 15:04 UTC, NEXO traded at USD 0.698 and was down 3% in a day. The value can also be down 7% in per week and 48% in a month.
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Study extra:
– Voyager Digital Secures Credit Line from Alameda, May Send Three Arrows a Notice of Default
– SEC’s Peirce Says Crypto’s Lack of ‘Bailout Mechanism’ Is a Strength; FTX CEO as a ‘White Knight’
– CEL Token Soars as Celsius Shareholder Proposes Recovery Plan, Celsius Pays Compound
– Celsius Reportedly Unlikely to Get Bailout Money from Investors
