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Nexo Eyes Targets Potential M&A When Crypto Markets Are In ‘State Of Fear’

As the crypto market has entered a “fear state” and “no one can say” whether the bottom is behind us or not, major crypto lender Nexo (NEXO) is keeping an eye on the ability to acquire struggling companies, according to its co-founders.

Speaking during a live stream (Ask Me Anything) AMA on Tuesday, Kalin Metodiev, the company’s co-founder and managing partner, said the market has now moved from the state he was in described as “a state of over-optimism” to a “state of fear.”

Antoni Trenchev (on left) and Kalin Metodiev. Source: A video screenshot, Youtube/Nexo 

We believe there is still some volatility ahead and no one can say if this will be the bottom,” Metodiev said, warning investors they should “fasten their seat belts.” to prepare for whatever happens next.

Nexo is a crypto lending and lending company that operates with a business model similar to Celsius (CEL), the troubled major crypto lender recently halted all withdrawals customers due to “extreme market conditions”.

Commenting on the situation around degrees Celsius and the broader industry, Metodiev said “several companies have gotten into trouble for various reasons,” adding that Nexo has started “a conversation“ unidentified with some of those struggling companies.

He emphasized that Nexo is only working to improve the industry and that it will do what it can in this respect.

We’ve always been open about our commitment to the growth of the ecosystem we’ve always been interested in supporting companies, collaborating [with] visionary projects and teams. clarity on how they can create an innovative product that will be demanded by the blockchain community,”.

said the Nexo co-founder.

He added that one way this commitment can be demonstrated to companies in the ecosystem is through “acquiring certain parts of the business or the business as a whole.”

As previously reported, Nexo earlier this month extended an offer to C to obtain “all or part of qualified C degree mortgage loans.”

Consolidations and sustainability

Speaking during the same AMA session, Antoni Trenchev, the co-founder and other managing partner of Nexos, said that he sees a wave of “consolidation” unfolding in the crypto industry going forward. This development is likely to take shape similar to how mergers and acquisitions have shaped the traditional banking industry over the years, he said.

This “will hopefully help improve the space,” says Trenchev.

Furthermore, the company’s CEO also addressed a question about whether Nexos’ “high yield” is sustainable in the current market environment, without going into detail on how to generate profits. capacity.

To pay you six percent, we have to go out and make at least eight percent to make it all work […],” says Trenchev, noting that “all of this goes back to sustainability of the model.”

At the end of the day, it is better to have a lower yield but a safer product than the prospect of double digit yields will result in a 100% loss,” Trenchev answered the question by saying.

Finally, asked if Nexo has the potential to survive a two-year bear market, Metodiev admitted that it was “not happy in a bear market” and said, “I hope the bear market will not last two years.”

In both cases, Nexo is in a “very strong financial position,” said Metodiev, without specifying.

At 15:04 UTC, NEXO trades at $0.698 and is down 3% in a day. Prices also fell 7% in a week and 48% in a month.