Nexo responded to rumors of insolvency that sprang up on Nov. 16 after its web site stopped displaying the real-time audit of its belongings versus liabilities and mentioned the attestation could be again up quickly.
A Nexo consultant instructed CryptoSlate that related oracle technical difficulties have occurred previously and it had already reached out to Armanino concerning the malfunction. The spokesperson added:
“With earlier such downtimes of the Armanino real-time attestation, the issue was resolved promptly inside a day.”
Actual-Time Audits
On Nov. 9, Nexo co-founder and Managing Accomplice Antoni Trenchev took to Twitter, saying the corporate has no publicity to FTX. Trenchev additionally identified that Armanino’s real-time audit evidenced the corporate’s solvency.
The true-time audit was first rolled out in Sept. 2021 to offer better “transparency, safety, and peace of thoughts” for Nexo customers.
Nonetheless, critics preserve that Armanino doesn’t give an opinion on the corporate’s monetary well being, solely that belongings exceed liabilities.
Insolvency fears
A tweet from @VersusBTC sparked the hypothesis on Nov. 16. He famous Armanino’s attestation was lacking from the newest report. The accompanying display seize confirmed an error message stopping affirmation that belongings exceed liabilities for Nov. 16.
Breaking: NEXO actual time audit is below upkeep!
Usually they publish a brand new audit each day at 2am UTC.Not as we speak! pic.twitter.com/0KnF8HrWdb
— Bitcoin vs. Gold (@VersusBtc) November 16, 2022
Nonetheless, @NexoAngel1 commented that audit associate Armanino is having technical difficulties with its oracle value feed, resulting in the error message. The attestation will go dwell as soon as the problem has been fastened.
Our companions are experiencing a technical problem with fetching USD pricing information. Consequently, as we speak’s report displaying that Nexo’s belongings exceed buyer liabilities in actual time, can be out there after they resolve the problem. Thanks to your persistence.
— NexoAngel I (@NexoAngel1) November 16, 2022
Nexo Angels are Nexo group members who work straight with the corporate’s Neighborhood Engagement group.
Insolvency rumors run rampant
The cryptocurrency group is on excessive alert following FTX asserting Chapter 11 chapter on Nov. 11.
With collective billions down the drain, belief in cryptocurrency has hit a low. Extra so, contemplating FTX was broadly considered a reputable firm earlier than it filed for chapter, and the submitting occurring not lengthy after the Terra implosion.
In response to considerations, CeFi platforms which can be nonetheless standing have sought to reassure customers by way of varied means, together with some voluntarily reporting Proof of Reserves. Nonetheless, doubts stay over the efficacy of this follow, particularly if liabilities should not said.
Referencing Sam Bankman-Fried, @joshnomics summed up the overall sentiment by sarcastically saying that he ought to act irresponsibly and criminally to realize crypto billionaire standing.
So I lastly found out what’s separating me from the billionaires in crypto. I simply have to lie about my belongings, lever up, and use unrealized pnl as a part of my self outlined “prime quality liquid belongings”, audit myself after which use the audit to fleece fool hf’s for money
— joshnomics (@joshnomics) November 8, 2022
