Because the crypto market has entered “a state of concern,” and “no person can say” whether or not the underside is already behind us, main crypto lender Nexo (NEXO) is eyeing prospects to accumulate troubled corporations, based on 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, stated the market has now moved from what he described as an “an excessively optimistic state” to “a state of concern.”
“We consider there may be some volatility on the horizon nonetheless, and no person can say whether or not that is the underside,” Metodiev stated, warning buyers that they need to “undoubtedly 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 as a result of “excessive market situations.”
Commenting on the state of affairs surrounding Celsius and the broader trade, Metodiev stated “some corporations have gone into bother for varied causes,” whereas including that Nexo has initiated unspecified “conversations” with a few of these troubled corporations.
He burdened that Nexo is barely working for the betterment of the trade, and that it does what it may possibly on this regard.
“We’ve got at all times been very open about our dedication to the expansion of the ecosystem […] we’re at all times concerned with supporting corporations, partnering [with] initiatives and groups which have a transparent imaginative and prescient of how they will create an revolutionary product that can be demanded by the blockchain neighborhood,” the Nexo co-founder stated.
He added that a method this dedication to corporations within the ecosystem could possibly be manifested is thru a possible “acquisition of sure components of the enterprise or the whole enterprise.”
As beforehand reported, Nexo earlier this month prolonged a proposal to Celsius to accumulate “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, stated that he sees a wave of “consolidations” occurring within the crypto trade going ahead. The event is more likely to take form much like how acquisitions and consolidations have formed the standard banking trade through the years, he stated.
It will “hopefully be for the betterment of the house,” Trenchev stated.
Additional, the corporate’s CEO additionally addressed a query about whether or not Nexos’ “excessive yields” are sustainable within the present market surroundings with out going into a lot element on how yields are generated.
“As a way to pay you six p.c, we now have to exit and make no less than eight to make all of it work […],” Trenchev stated, 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 can lead to a 100% loss,” Trenchev responded to the query by saying.
Lastly, requested whether or not Nexo may doubtlessly survive a two-year bear market, Metodiev admitted that “it’s not enjoyable in a bear market,” and stated “I hope the bear market won’t final two years.”
In both case, Nexo has “a really sturdy monetary place,” Metodiev stated with out specifying.
At 15:04 UTC, NEXO traded at USD 0.698 and was down 3% in a day. The value can be down 7% in every week and 48% in a month.
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