Bankruptcy or insolvency is not in the “reality of Nexo”, according to the co-founder and managing partner of the cryptocurrency lending platform, Kalin Metodiev.
In an Ask Me Anything (AMA) video posted via YouTube on October 4, Founders and Managing Partners Metodiev and Antoni Trenchev addressed community questions and recent FUD-related rumors that Nexo may soon face insolvency issues.
In response to a question about the insolvency/bankruptcy rumors and whether Nexo will be the “next Celsius and Voyager”, Metodiev explicitly stated that:
“Insolvency and bankruptcy are nowhere in the reality of Nexo, and we believe, hope, aspire, [y] we are working very hard to offer a very strong and sustainable future for our users.”
“Find resemblances with these two names [Celsius y Voyager] or other names in the space is very far from reality and I think this is very easy to check,” he added.
Adding to Metodiev’s comments, Trenchev noted “that he did not want to mention [ningún] name, but I will mention a few; you know, no exposure to the Terra (LUNA) debacle, absolutely no loans to Three Arrows Capital.”
“In the two names that were mentioned in the question, in the bankruptcy documents you can see the list of creditors, but Nexo is not in it”said.
The rumors appear to have originated in part from a claim in a September 26 cease and desist order from the Kentucky Department of Financial Institutions that Nexo’s “liabilities would exceed its assets” if its holdings of Nexo (NEXO) tokens will be excluded from the equation. This is just one of several cease and desist orders filed against Nexo.
market analystsas Dirty Bubble Media author Mike Burgersburg previously alleged that Nexo faces insolvency risks because it owns the vast majority of NEXO’s token supply on its platform, similar to Celsius, which owned over 50% of its native token, CEL..
According to this thought, a sharp drop in NEXO’s price could significantly affect the company, it claimed.
Nevertheless, a Nexo spokesperson quickly denied the allegations to Cointelegraph, stating that the data they provided to Kentucky regulators was for one of the Nexo Group entities, and that “NEXO tokens represent less than 10% of the company’s total assets.” “.
In the AMA, Nexo’s founders also addressed a question regarding the firm’s recent attestation, which stated that Nexo’s $3.7 billion worth of client liabilities are 100% guaranteed, but provided no further details than that..
Asked if the firm plans to “include a breakdown of assets within the statement rather than just a total dollar figure” Metodiev outlined that Nexo will provide greater transparency, but did not outline what it will entail, as he suggested the company also needs to balance the need for privacy to avoid competition..
“The more transparency we can offer, the more useful it will be for our community, for our users and for decision makers when it comes to investing. We would continue to increase this transparency, but make sure that this transparency does not diminish our competitive advantage in the first place.”
“I think they know that, Although we are committed to and will continue to increase transparency, it must be done with the appropriate degree of duty and responsibility to ensure that this transparency is constructive and beneficial to decision-making,” he added..
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