Crypto lending platform Nexo, says that its robust steadiness sheet means it could actually trip to the rescue to supply liquidity throughout the present market turmoil by buying the belongings of struggling crypto corporations.

In a weblog post, Nexo introduced that it’s at the moment receiving recommendation from banking large Citigroup on how greatest to accumulate the belongings of bancrupt crypto corporations in order that traders can regain entry to blocked funds.

Final week Antoni Trenchev, co-founder and managing associate at Nexo, advised Bloomberg that the present crypto crash reminds him of the Panic of 1907 — the place main Wall St establishments have been compelled to bail out different struggling corporations.

“This jogs my memory, fairly frankly, of the 1907 financial institution panic the place JP Morgan was compelled to step in together with his personal funds after which rally all these guys that have been solvent to repair the state of affairs.”

Within the weblog submit Nexo boasted that it had at all times run a sustainable enterprise mannequin that didn’t interact in dangerous lending practices, because of this it now occupies a place of “unmatched stability,” which means that it’s uniquely positioned to step into the breach to assist shore up struggling corporations.

“The crypto house is about to enter a section of mass consolidation which has already begun with the remaining solvent gamers, like Nexo, expressing their readiness to accumulate the belongings of corporations with solvency points with the intention to provide rapid liquidity to their purchasers and aid to the whole trade.”

The submit revealed that Nexo has already made contact with a lot of struggling crypto corporations in personal, providing up other ways to supply liquidity help.

On June 13, Nexo publicly introduced that it was ready to accumulate a few of Celsius’ excellent loans, following revelations that the guy lending platform was struggling a serious liquidity disaster.

On the identical day Nexo’s native token, NEXO plunged almost 25%, falling to a brand new yearly low of $0.61 per token as fears of main DeFi contagion echoed by means of the market.

Three days later, contagion fears have been reignited as funding agency 3 Arrows Capital (3AC) failed to satisfy margin calls — struggling a lack of $400M in liquidations throughout a number of positions. Nexo says it does not have any publicity to 3AC.

In contrast to many different embattled corporations, Nexo has 100% liquidity to satisfy its $4.96 billion worth of debt obligations, in accordance with U.S.-based audit agency Armanino.

Celsius’ disaster exposes issues of low liquidity in bear markets

Because the main drawdown on June 13, NEXO’s worth has stabilised and is at the moment buying and selling for $0.65, in accordance with information from TradingView.