Here’s What Nexo Executives Said About Solvency Issues

After days of speculation about Nexo’s financial health and solvency, crypto lender executives took to YouTube to answer community questions during Ask Me Anything (AMA) session.

The session was hosted by Nexo founders and managing partners Anthony Trenchev and Kalin Mitodiev. Both addressed concerns raised by users.

security for the community

The executives denied rumors from regulators and investors about the solvency of the cryptocurrency lender, assuring everyone that the company can meet them.

“Insolvency and bankruptcy have no place in the Nexo reality, and we believe, hope, as we strive, we are working hard to deliver a very strong and sustainable future for our users,” Metodiev said.

The executives raised one issue in particular, the comparison with defunct crypto lenders such as Voyager Digital and Celsius Network.

Look for the similarities between these two names [Celsius and Voyager] Metodiev pointed out that other names in space are very far from reality and I think it is very easy to verify this.

Metodiev’s argument was bolstered by Trenchev, who cited a list of creditors from Voyager and Celsius’s bankruptcy filings and indicated that Nexo was not on that list.

Trenchev went on to remind the community that unlike other lenders that have gone bankrupt, Nexo hasn’t hit Terra or Three Arrows Capital.

What caused the FUD

Nexo was subject to concurrent enforcement a job by eight different US government regulatory agencies. Regulators from California, Virginia, Kentucky and Oklahoma issued cease-and-desist orders against the lender.

while, Released New York, Washington, Maryland and South Carolina Letters direct similar accusations to deal a heavy blow to the lender.

sexy followed Article – Commodity published by one of the media, which indicated some rather disturbing facts.

The article talked about how Nexo got the majority of the token supply on the platform itself, such as Celsius.

According to the author, the depreciation of the token due to the regulatory action would significantly reduce the value of the platform, raising concerns about its solvency.

These allegations were dismissed by a Nexo spokesperson, who stated that Nexo’s token holdings account for less than 10% of its assets.

This was followed by an update from PeckShieldAlert on Twitter. String Analysis Company looking at An address linked to NEXO has withdrawn $7,758.8 of WBTC ($151 million) from MakerDAO.

This sudden transfer of funds caused panic among investors, especially in the background of all the FUD caused by regulatory actions and claims of token holdings.

Increase transparency in the future

The executives concluded the session by assuring the community of increased transparency around the company’s financial aspects, without compromising competitive advantage.

The general sentiment on social media after the AMA session was inherently positive. This continues to show the importance of community participation in times of research and development.

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