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HomeMarketsNexo Eyes Potential M&A Targets as Crypto Market in ‘State of Fear’

Nexo Eyes Potential M&A Targets as Crypto Market in ‘State of Fear’

Antoni Trenchev (on the left) and Karin Metodiev. Source: Video Screenshot, Youtube / Nexo

A major crypto lender as the crypto market has entered a “state of horror” and “no one can tell” if the bottom is already behind us Nexo (NEXO) is looking at the possibility of acquiring a troubled company, according to its co-founder.

At a livestreaming AMA session on Tuesday, the company’s co-founder and managing partner Karin Metodiev said the market is now “overly optimistic” from what he described as “overly optimistic.” He said he had moved to “state.” Of fear. “

“We continue to have volatility and we don’t know if this is the bottom,” said Metdiev, who should “reliably give in” to investors to prepare for what’s next. Warned.

Nexo is a cryptocurrency lending and borrowing company operating with a similar business model. Celsius (CEL), a major crypto lender with problems that recently stopped the withdrawal of all customers due to “extreme market conditions”.

Commenting on the situation surrounding the wider industry with Celsius, Metdiev said, “Some companies got into trouble for a variety of reasons,” and Nexo had an unspecified “conversation” with some of the companies that had those problems. “He added that he started.

He emphasized that Nexo is working only for the improvement of the industry and is doing what is possible in this regard.

“We are always very open about our commitment to ecosystem growth. […] We are always interested in supporting and partnering with companies [with] “Projects and teams with a clear vision of how we can create the innovative products that the blockchain community demands,” said Nexo co-founder.

He added that one way to reveal this commitment to companies in the ecosystem is through potential “acquisitions of specific parts of the business or the entire business.”

As previously reported, Nexo extended its offer to Celsius earlier this month to acquire “all or part of Celsius’ eligible unpaid secured loan receivables.”

Integration and sustainability

In the same AMA session, Antonio Trenchev, another co-founder and managing partner of Nexos, said he was seeing a wave of “integration” in the crypto industry going forward. He said this development is likely to be shaped in the same way that acquisitions and integrations have shaped the traditional banking industry over the years.

This “hopefully improves space,” Trenchev said.

In addition, the company’s CEO answered the question of whether Nexos’ “high yields” are sustainable in the current market environment without elaborating on how to generate yields.

“To pay you 6%, we have to go out and make at least 8 to make it all work. […]”This all goes back to the sustainability of the model,” said Trenchev.

“In the end, it’s better to have a lower-yielding but safer product than a double-digit yield outlook that would result in a 100% loss,” Trenchev replied.

Finally, when asked if Nexo could survive the two-year bear market, Metdiev admitted that it was “not interesting in the bear market” and “hoped the bear market wouldn’t last for two years.” Said.

In each case, Nexo is in a “very strong financial position,” Metdiev said unspecified.

At 15:04 UTC, NEXO traded at USD 0.698, down 3% in one day. Prices are also down 7% in a week and 48% in a month.

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-CEL tokens skyrocket as Celsius shareholders propose recovery plans, Celsius pays compound
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