Chapter or insolvency shouldn’t be in “Nexo’s actuality” based on the crypto lending platform’s co-founder and managing accomplice, Kalin Metodiev.
In an Ask Me Something (AMA) video posted by way of YouTube on Oct. 4, founders and managing companions Metodiev and Antoni Trenchev addressed neighborhood questions and up to date FUD-related rumors that Nexo might quickly face insolvency points.
Responding to a query concerning the insolvency/chapter rumors and whether or not Nexo would be the “subsequent Celsius and Voyager,” Metodiev explicitly acknowledged that:
“Insolvency, chapter are nowhere in Nexo’s actuality, and we imagine, we hope, we aspire, [and] we[‘re] work[ing] very exhausting to ship a really robust and sustainable future for our customers.”
“Discovering resemblances with these two names [Celsius and Voyager] or different names within the area, could be very removed from actuality and I feel that is very simply verifiable,” he added.
Including to Metodiev’s feedback, Trenchev famous: “that I didn’t wish to point out [any] names however I’ll point out a couple of names; you recognize, no publicity to the Terra (LUNA) debacle, completely no lending to Three Arrows Capital.”
“Within the two names that have been talked about within the query, within the chapter filings you’ll be able to see the collectors checklist, Nexo shouldn’t be on that,” he mentioned.
The rumors seem to have originated partly, from a declare in a Sept. 26 stop and desist order from the Kentucky Division of Monetary Establishments that Nexo’s “liabilities would exceed its belongings” if its Nexo (NEXO) token holdings have been excluded from the equation. That is simply one among a number of stop and desist orders filed in opposition to Nexo.
Market analysts akin to Soiled Bubble Media creator Mike Burgersburg beforehand alleged that Nexo is dealing with insolvency dangers as a result of it holds the overwhelming majority of NEXO’s token provide on its platform, just like Celsius which owned greater than 50% of its native token, CEL.
Consistent with such considering, a pointy decline within the worth of NEXO might considerably affect the corporate, he alleged.
Nevertheless, a Nexo spokesperson promptly denied the allegations to Cointelegraph, stating that the information they supplied to Kentucky regulators was for one of many Nexo Group’s entities, and that “NEXO tokens signify lower than 10% of the corporate’s whole belongings.”
Within the AMA, the Nexo founders additionally addressed a query regarding the agency’s current attestation, which indicated that Nexo’s $3.7 billion price of buyer liabilities are 100% collateralized however doesn’t present any additional particulars than that.
Associated: Nexo ‘stunned’ by state regulators’ actions, says co-founder
Requested whether or not the agency plans to “embody a breakdown of belongings inside the attestation relatively than only a whole greenback determine?” Metodiev outlined that Nexo will present larger transparency, however didn’t define what that can entail as he recommended the corporate additionally must steadiness the necessity for privateness to stave off competitors.
“The extra transparency we will present that might be useful to our neighborhood, to our customers, to determination makers for funding functions. We might proceed rising this transparency, however ensuring that this transparency, to begin with, does not diminish our aggressive edge.”
“I feel you recognize that whereas we commit and can proceed rising the transparency, it must be carried out with the right diploma of responsibility and duty to guarantee that this transparency is constructive and helpful for determination making functions,” he added.
