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Did Nexo know already about Celsius’ trouble before its freezing withdrawal?


www.thecoinrepublic.com 14 June 2022 14:40, UTC
Reading time: ~2 m

On one hand investors of the crypto market are seeking their ways to sell off their assets while crypto lending firm Nexo is looking to another firm Celsius to buyout

For the overall crypto currency market this week started with quite a shock where prices started plunging drastically. Across the broad crypto market and top cryptocurrencies saw decline in their prices consistently for a while now, this led to many repercussions. One of the major responses that crypto space has seen came in the form of prominent crypto lending platform Celsisus halting all the withdrawals of assets. 

This might have come as a surprise for many in the crypto space but another crypto lending firm in the space, Nexo didn’t seem surprised by Celsius’ this move. It could be said given Nexo pitching to Celsius for acquiring its distressed assets shortly after the announcement of Celsius that frustrated its users. 

Nexo on 13th June shared a letter on its Twitter that had a formal offer to Celsius to buy assets from it. Nexo has shared that it was already aware about the looming troubles that Celsius is going through. A spokesperson from Nexo said that being one the major participants in the interbank cryptocurrency space, Nexo crypto lending platform naturally has closeness to all whatever is happening in the space. 

Further the spokesperson also stated that according to the reports on chain data and clients, it’s been clearly seen that Celsius is facing difficulties while meeting its responsibilities related to withdrawals. 

He also added that from the perspective of risk management, the findings suggest that there have been several unsustainability of Celsius. 

On Sunday, Nexo contacted Celsius regarding the possibilities to help with the liquidity provision but they Celsius also claimed that they don’t need and refused help. This led crypto lending platform Nexo submitting a formal offer that it shared publicly on Monday. 

When Switzerland based firm Nexo has asked about an immediate offer to buy assets from Celsius, it revised again that it just hopes to look out for investors and users of crypto lending services. Nexo said that the firm has its timing as its essence because ultimately the main concern of the crypto lending firm is to protect the interests of crypto users in such unfortunate situations. 

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