Zurigg-based crypto lender Nexo is looking to take advantage of the consolidation in the crypto world. With help from a US bank, it sees itself as financially well equipped to take over the assets of struggling competitors.
In what is increasingly looking like a repeat of the consolidation of companies following the burst of the dot-com bubble, quite a few crypto companies are unlikely to survive the current crash or at the very least have been severely hobbled in the wake of the collapse. Other companies, however, will emerge stronger from the crypto winter.
Zug-domiciled crypto lending platform Nexo plans to provide liquidity during the current market turmoil by acquiring the assets of struggling crypto companies. In doing so, it intends to play a key role in the upcoming consolidation of the blockchain space.
To that end, the crypto platform is enlisting support from a major US bank. In a blog post, Nexo announced that the company is being advised by banking giant Citigroup. Acquisitions are expected to help crypto investors regain access to blocked funds. Nexo is already in contact with a number of troubled crypto companies and has offered them various options for help.
Celsius, which is threatened with insolvency and suffering from a huge liquidity crisis, recently froze withdrawals and transfers between accounts as a result of cryptocurrencies’ rapid downward slide. According to media reports, Celsius is also seeking help from Citigroup, last week having hired the bank to advise on possible financing.
To paraphrase Shakespeare, for many firms this is the winter of their crypto discontent.