Nexo claims “smear marketing campaign” ignores its makes an attempt to help bancrupt firms

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CryptoSlate spoke to Nexo co-founder Antoni Trenchev relating to Nexo’s choice to extend insurance coverage to $775 million, its strikes to supply support to struggling crypto corporations, and the current allegations claiming Nexo is in hassle.

Trenchev informed CryptoSlate that its transfer to extend insurance coverage ranges was part of an ongoing plan to enhance safety unrelated to current market volatility. Nexo holds property in custody with third events that are “totally protected” ought to “one thing occurs to those property beneath the care of our third-party custodians.” Nexo has not needed to name on any of the insurances it holds.

Additional, Trenchev confirmed that each one loans are “strictly collateralized” and claimed it’s”essentially the most security-focused lender” in crypto. Amid allegations that Nexo may additionally be secretly bancrupt, Trenchev mentioned its public partnership with its third-party custodians means they “are assured every part is accurately.”

The Nexo Co-Founder refused to touch upon the potential supply of current allegations stating that “the current noise within the area is something apart from a smear marketing campaign.” In actual fact, Trenchev declared Nexo is in a strong place in comparison with others within the business.

In response to the state of Nexo’s supply to amass Celsius’ property Trenchev asserted  that “there are a number of ongoing processes for which Nexo has been approached to assist with the supply of liquidity.” Additional, Trenchev affirmed that Nexo is “dedicated to being a part of the answer” to revive the popularity of crypto lending.

A current put up by Celsius said that it’s exploring “strategic transactions” to “stabilize” its liquidity points. Neither social gathering has neither confirmed nor denied that they’re in negotiations.

Disclaimer: Nexo is an promoting accomplice for CryptoSlate.

Nexo has elevated its insurance coverage lately to over $700M what was the catalyst for this?

There was no particular catalyst, reasonably Nexo repeatedly dedicates efforts to growing its insurance coverage and varied different safety features.This was an ongoing course of for a lot of months by means of our partnerships with BitGo, Ledger, Fireblocks, Bakkt and different custodians, which got here into fruition now.

How does the insurance coverage work? Beneath what circumstances would a buyer obtain a payout?

The insurance coverage applies to all custodial property on Nexo. Our custodians keep segregated wallets for every of their shoppers – a safety structure engineered to forestall breaches affecting multiple pockets. Because of this within the occasion that one thing occurs to those property beneath the care of our third-party custodians, Nexo and our shoppers by proxy could be totally protected.

How does the insurance coverage work? Beneath what circumstances would a buyer obtain a payout?

The insurance coverage applies to all custodial property on Nexo. Our custodians keep segregated wallets for every of their shoppers – a safety structure engineered to forestall breaches affecting multiple pockets. Because of this within the occasion that one thing occurs to those property beneath the care of our third-party custodians, Nexo and our shoppers by proxy could be totally protected.

Have you ever had to make use of this insurance coverage at any time to this point?

No. Nexo has an impeccable monitor report for safety and danger administration, we’ve by no means been hacked or misplaced shoppers’ funds, and thus have by no means needed to depend on our insurance coverage.

Does this insurance coverage give Nexo a aggressive edge in opposition to its competitors?

One of these insurance coverage is pretty frequent within the blockchain area, but Nexo is without doubt one of the gamers with the best insurance coverage on custodial property, distinguishing us from our competitors. This together with our different basic practices like strictly collateralized loans, a third-party real-time attest of our funds, prudent danger administration, and the proactive procuring of licenses globally, has earned us the popularity of essentially the most security-focused lender.

Does this insurance coverage give Nexo a aggressive edge in opposition to its competitors?

One of these insurance coverage is pretty frequent within the blockchain area, but Nexo is without doubt one of the gamers with the best insurance coverage on custodial property, distinguishing us from our competitors. This together with our different basic practices like strictly collateralized loans, a third-party real-time attest of our funds, prudent danger administration, and the proactive procuring of licenses globally, has earned us the popularity of essentially the most security-focused lender.

How can customers who say “they’d by no means pay out, its simply an promoting gimmick” be reassured the insurance coverage is an actual backstop to investing their funds in centralized platforms?

Saying a partnership basically is a fairly substantial dedication. So for among the main establishments within the area like BitGo, Fireblock, Bakkt and Ledger – the names converse for themselves – to publicly work with Nexo means all these entities have carried out their due diligence on our enterprise and are assured every part is accurately. Past our work with the aforementioned custodians, Nexo additionally has collaborations with the likes of MasterCard, Constancy, and lots of different family names. These establishments will not be ones that might allow us to idly use their names.

Do you consider there’s a focused marketing campaign in opposition to Nexo at current? In that case do you have got any touch upon who that is likely to be and why?

It might seem so, wouldn’t it? We discover it onerous to outline the current noise within the area as something apart from a smear marketing campaign. There’s little sense in speculating over who is likely to be behind it. Somewhat than partaking in fruitless Twitter wars, that, frankly, this example doesn’t have the traction to warrant, our crew is focusing its efforts on offering the steadiness our business wants proper now. What’s extra, we’re utilizing this market downturn correctly – by means of steady product improvement and lively recruitment whereas others are shedding.

A number of of the better-known firms within the area are seemingly near insolvency and the neighborhood is in turmoil. In stark distinction, Nexo continues to operate usually and even has adequate liquidity reserves to supply support to those firms– we purpose to revive public confidence and assist their adversely affected shoppers and buyers. Nexo is working with top-tier advisors from conventional finance and we’re poised to be a key participant in what seems to be coming, particularly, a mass consolidation of the crypto area.

Have you ever acquired any additional data relating to your supply to Celsius?

There are a number of ongoing processes for which Nexo has been approached to assist with the supply of liquidity for these going through solvency points however can’t at present touch upon the small print. We’re, nevertheless, dedicated to being a part of the answer that may lead to a consolidation of the area and the restoring of greatest practices in lending.

Join with Antoni Trenchev



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