Bankruptcy or insolvency does not threaten Nexo’s crypto-lending platform. This was stated by Kalin Metodiev, the firm’s managing partner.
During a AMA session, Kalin Metodiev and Antoni Trenchev, the firm’s founders, commented on rumours about possible financial insolvency of Nexo.
Answering the question of whether the company would become the next Celsius or Voyager», the first stated:
Insolvency or bankruptcy is in no way a reality for Nexo. We believe, we hope, we strive and we work very hard to ensure a robust and sustainable future for our users.
He rejected any similarity between the platform’s situation and the two aforementioned projects.
In addition to his comment, Trenchev noted that Nexo is not among the creditors of the collapsed Terra and Three Arrows Capital, unlike Celsius and Voyager.
In September a number of US regulators brought charges against Nexo. Dirty Bubble Media podcast host Mike Burgersburg noted the agencies’ view: the only asset separating bankruptcy from the company is its own token. The platform holds a significant amount of NEXO, and a price crash could negatively affect its financial resilience.
According to independent audit platform Armanino, liabilities of 186 188 BTC (~$3.7 bln) are overcollateralized by assets at Nexo. However, the attestation provides no details.
Asked whether the firm intends to provide a breakdown by asset type in reserves, Metodiev said they strive for transparency but must consider confidentiality concerns.
The more disclosure we can provide, the better for the community, users and those making investment decisions. We would continue to raise transparency, but we must ensure that it does not erode our competitive advantages,
Earlier in June, Nexo expressed willingness to buy the lending portfolio of the bankrupt Celsius.
The platform has also begun acquisition of another financially troubled rival — Vauld.
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