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The head of Nexo compared the crisis in the crypto market with the panic of 1907

Co-founder and CEO of the Nexo landing platform Anthony Trenchev compared the current collapse of the cryptocurrency market with banking panic of 1907. In a conversation with Bloomberg, he noted that more successful players are forced to come to the aid of colleagues in an attempt to prevent the collapse of the industry.

“Frankly, it reminds me of the Panic of 1907 when JP Morgan was forced to step in with their own funds and then pool all the solvent guys to fix the situation. This happened before the advent Fedso there was no lender of last resort,” Trenchev said.

According to him, now the market has developed a similar situation. The head of Nexo emphasized that the company aims to be part of a solution that will lead to the consolidation of the cryptocurrency industry.

He said the platform has been approached by three Wall Street “household” banks that want to “use their experience with paying customers to fix the situation.” In his opinion, the industry is moving towards M&A– transactions and consolidation.

Earlier, Nexo announced its readiness to buy out the loan portfolio from its competitor Celsius. The offer is valid until June 20.

On June 13, 2022, the latter suspended withdrawals and operations on the platform “due to extreme market conditions.” According to experts, the real reason for what happened is a “liquidity crisis”, due to which the company cannot make payments to customers.

Some called the bankruptcy of Celsius almost inevitable, and the Securities Commission of the five US states, on a “priority basis,” began to study the activities of the company.

Nexo also partnered with Three Arrows Capital (3AC) to develop an NFT-based loan product, but it never launched. Trenchev noted that after that, the hedge fund approached the platform with a request to issue an unsecured loan, but was refused.

In his opinion, companies that issued unsecured loans to 3AC should be concerned. However, he believes that the market will not see a “chain reaction” as the worst is over.

“I think the things that happened to them are pretty much already priced in and the selling pressure that we saw on Monday and Tuesday,” he explained.

Recall that in April Trenchev predicted the growth of bitcoin to $100,000 during 2022.

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