Kalin Metodiev said, “Insolvency, bankruptcy are nowhere in Nexo’s reality, and we believe, we hope, we aspire, we work very hard to deliver a very strong and sustainable future for our users.”
Crypto lender Nexo’s Co-Founders reassured investors that Nexo is fully solvent and quelled rumors about the platform facing bankruptcy.
In a recent AMA session, Nexo’s CFA Kalin Metodiev and CEO Antoni Trenchev answered the community’s questions related to Nexo’s operations.
They stated that, unlike Voyager and Celsius, insolvency is “nowhere in Nexo’s reality,” with Trenchev adding,
“I didn’t want to mention names but I'm going to mention a few names; you know, no exposure to the Terra (LUNA) debacle, absolutely no lending to Three Arrows Capital.”
According to Metodiev, Nexo's lack of exposure to Terra USD or 3AC can be verified from the court filings. He believes that Nexo continues to operate during the crypto winter thanks to its risk management protocols.
Last month, eight U.S. state regulators filed cease-and-desist orders against Nexo. The regulators alleged that Nexo offered high-yield products without registering them as securities.
Referring to them, Trenchev said that the firm is working with the regulators to plan its next step.
Moreover, Metodiev addressed Nexo’s acquisition of a stake in Hulette Bancorp. He claimed this will aid Nexo in realizing its goal of providing “all services under one roof" to its clients. It will also help Nexo in expanding its services in the field of traditional markets in the U.S.
Trenchev noted the platform will add more utilities and services to the NEXO token soon.
To conclude, Trenchev stated Nexo will provide more transparency into its operations while also maintaining privacy on certain matters to keep its “competitive edge.”
