Nexo has reached out to Citibank for help with potential acquisitions as well as providing liquidity to underperforming cryptocurrency platforms amid a downturn in the market.
The current bear market has caused many cryptocurrency companies to falter. With the Luna fiasco and assets falling to levels not seen in 2 years, cryptocurrency pillars are struggling to stay afloat, either by freezing hiring, laying off staff completely, or freezing exchanges and withdrawals “to protect consumers.”
However, not all companies are feeling the effects of cryptozyma. The Binance team, for example, has increased hiring.
And as for DeFi, Nexo hopes to capture the market by refinancing other DeFi platforms that are currently navigating choppy waters.
Better planning, better business
Nexo recently sent a letter of intent to Celsius stating its willingness to acquire the latter’s respective assets to save the platform. Now Nexo has published a statement on its blog outlining its reasons for weathering the storm better than some of its competitors, as well as its intention to capitalize on its mistakes.
In a public statement released by Nexo, a spokesman said the release of the aforementioned LOI was an exceptional decision designed to draw attention. The company said it has distributed similar olive branches to other platforms behind closed doors, promising future updates at a more appropriate date.
“After publicly announcing our willingness to help stabilize the industry, Nexo is currently in talks with other major cryptocurrencies to develop a larger relief plan for the blockchain space. Because the situation is dynamic and sensitive, we will let you know as soon as possible.”
Citibank came on board
To further insulate itself from the ongoing situation, Nexo brought in experts from Citibank to help in its mission to help the affected industry, “just like J.P. Morgan did over a century ago.”
Nexo also outlined reasons why it could take responsibility and begin to expand its influence in the DeFi space. Among them, Nexo highlighted its strict collateral policies, which are reportedly far more stringent than others, and its $775 million insurance package, underwritten by legendary banking institutions such as Lloyd’s.
Attention was also raised to the security of assets at Nexo: the report said that the firm had never been hacked or otherwise exploited for either customer data or funds.
Overall, Nexo seems to be in a good position to benefit from the current situation. Nevertheless, the extent of consolidation is still unclear, and its long-term effects remain uncertain.
