Crypto

Nexo Turns to Citibank for Potential Acquisition Assistance as Crypto Markets Struggle

The current bear market has left many crypto-related companies reeling. Between the Luna fiasco and assets plummeting to levels not seen in 2 years, crypto mainstays are struggling to stay afloat, whether it’s freezing hiring, cutting staff altogether, or freezing trades and withdrawals “to protect to customers”.

However, not all businesses are feeling the effects of the crypto winter. The Binance team, for example, has increased its hiring spree.

And on the DeFi side, Nexo is looking to corner the market by refinancing other DeFi platforms that are currently sailing through choppy waters.

Better planning, better business

Recently, Nexo had sent a letter of intent to Celsius, indicating the willingness to buy the latter’s qualifying assets to rescue the platform. Now, Nexo has posted a statement on his blog, outlining the reasons why he managed to weather the storm better than some competitors, as well as intending to capitalize on his mistakes.

In the public statement issued by Nexo, the spokesperson stated that making the aforementioned LOI public was an exceptional decision intended to attract attention. The company stated that it had extended similar olive branches to other platforms behind closed doors, promising future updates at a more suitable date.

“Following the public declaration of our readiness to help stabilize the industry, Nexo is now in talks with other major cryptocurrency companies for the development of a larger relief plan for the blockchain space. As the situation is dynamic and delicate, we will update you as soon as possible.”

Citibank Incorporated

To further insulate itself from the current situation, Nexo has turned to Citibank experts to help it in its mission to bring relief to a battered industry, “much like the charge spearheaded by JP Morgan more than a century ago.”

Nexo further outlined the reasons why it can step up and start spreading its influence throughout the DeFi space. Among these, Nexo highlighted its strict guarantee policy, supposedly much stricter than that of others, and its insurance package worth $775 million, underwritten by historical banking institutions such as Lloyd’s.

Attention to asset security at Nexo was also mentioned, with the statement stating that the company had never been hacked or otherwise exploited for customer data or funds.

Overall, Nexo seems to be in a good position to capitalize on the current situation. However, the extent of the consolidation is still unclear, and what lasting effects it may have remain uncertain.

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