Citibank helps Nexo with acquisitions in crypto sector

Citibank helps Nexo with acquisitions in crypto sector
Crypto lending platform Nexo has announced in an article on their blog that they are hiring Citibank for advice on acquiring (parts of) other crypto companies. Nexo itself sees it as a necessary rescue operation in the sector.

Will Nexo save the DeFi sector?

On its own website blog, Nexo announces that, with Citibank as advisor, it will look for opportunities to acquire parts of other crypto companies, so that customers of those other parties can access their funds again.

The article was given the evocative title "The great cryptocurrency consolidation: Nexo's role in helping companies and investors through the turmoil". A comparison is made with a period of US bank runs in 1907, when there were no central banks to rescue commercial banks. Then New York bank J.P. Morgan stepped in to save the sector from collapse, along with other healthy banks.

Nexo sees himself as the J.P. Morgan of this crash of the crypto markets.

"The crypto space is about to enter a phase of consolidation, which has already begun with the remaining solvent parties, such as Nexo, showing their willingness to acquire the assets of companies with solvency problems to provide immediate liquidity to their customers; and the entire industry relief," Nexo writes.

Time for bargain hunting

The article is an elaboration of what was already announced last week. In this interview with Bloomberg, CEO and co-founder Antoni Trenchev states that it sees acquisitions primarily as a duty to help the entire industry. Bloomberg shows at the beginning of the item that CZ from Binance is planning the same thing, but is very different.

"This is also the best time for mergers and acquisitions," says CZ. "We are also looking at that. In bull markets, bringing in money is easy, but investing is difficult. Everything is very expensive. But now, in a bear market, we are seeing very good deals."

Nexo has 214,447 bitcoin ($4.3 billion) in liabilities outstanding. An auditor's report can be downloaded here at any time. Currently, the coverage of liabilities is more than 100%.