Nexo claims “smear campaign” ignores its attempts to aid insolvent companies
CryptoSlate co-founds Nexo on Nexo’s decision to increase insurance to $ 775 million, a move to help a struggling crypto company, and a recent allegation that Nexo is in trouble. I talked to Antoni Trenchev.
Trenchev told CryptoSlate that the move to raise insurance levels is part of an ongoing plan to improve security unrelated to recent market volatility. Nexo stores “fully protected” third parties and assets “if something happens to these assets under the control of a third party administrator”. Nexo didn’t have to claim the insurance it had.
In addition, Trenchev confirmed that all loans were “strictly secured” and claimed to be “the most security-focused lender” in cryptocurrencies.middle Allegations Nexo may also be bankrupt, Trenchev said, saying that a public partnership with a third-party custodian means “I’m confident that everything is what it should be.” ..
Nexo’s co-founder declined to comment on the potential cause of recent claims that “recent space noise is something other than the Smear Campaign.” In fact, Trenchev has declared Nexo in a strong position compared to other companies in the industry.
In response to Nexo’s offer to acquire Celsius’ assets, Trenchev argued that “there are several ongoing processes approached by Nexo to help provide liquidity.” In addition, Trenchev confirmed that Nexo is “committed to be part of the solution” to restore the reputation of crypto lending.
A Recent Posts by Celsius He said he was looking for “strategic transactions” to “stabilize” the liquidity problem. Neither party has confirmed or denied that negotiations are underway.
Disclaimer: Nexo is an advertising partner of CryptoSlate.
Nexo recently increased its insurance to over $ 700 million, what was the impetus for this?
There is no specific catalyst, and Nexo is continuously working to enhance insurance and various other security features. This has been a continuous process for months and now bears fruit through partnerships with BitGo, Ledger, Fireblocks, Bakkt, and other custodians.
How does insurance work? Under what conditions do customers receive payments?
Insurance covers all Nexo’s custody assets. Our custodians maintain separate wallets for each client. This is a security architecture designed to prevent breaches that affect multiple wallets. This means that if something happens to these assets under the control of a third-party custodian, Nexo and the proxy will fully protect the client.
How does insurance work? Under what conditions do customers receive payments?
Insurance covers all Nexo’s custody assets. Our custodians maintain separate wallets for each client. This is a security architecture designed to prevent breaches that affect multiple wallets. This means that if something happens to these assets under the control of a third-party custodian, Nexo and the proxy will fully protect the client.
Did you ever have to take out this insurance at any time?
No. Nexo has an excellent track record in security and risk management, has never been hacked, lost client funds, and did not have to rely on insurance.
Does this insurance give Nexo a competitive edge?
While this type of insurance is fairly common in the blockchain space, Nexo is one of the most insured players for assets under custody, setting it apart from its competitors. This is the most security-focused lender, along with other basic practices such as rigorous secured loans, real-time proof of finance by third parties, careful risk management, and aggressive procurement of global licenses. Has earned a reputation.
Does this insurance give Nexo a competitive edge?
While this type of insurance is fairly common in the blockchain space, Nexo is one of the most insured players for assets under custody, setting it apart from its competitors. This is the most security-focused lender, along with other basic practices such as rigorous secured loans, real-time proof of finance by third parties, careful risk management, and aggressive procurement of global licenses. Has earned a reputation.
How can users reassure that insurance is a real backstop to investing money in centralized platforms, saying “they never pay, it’s just an advertising gimmick”? ??
Announcement of partnerships in general is a fairly substantive commitment. Therefore, for some of the major institutions in the field such as BitGo, Fireblock, Bakkt, Ledger (the name speaks for itself), public cooperation with Nexo means that all these entities are our business. Do due diligence to and be confident that everything is appropriate. In addition to collaborating with custodians mentioned above, Nexo also collaborates with MasterCard, Fidelity, and many other household names. These agencies are not the agencies that allow us to use their names vaguely.
Do you think there is a targeted campaign for Nexo right now? If so, do you have any comments on who it is and why?
It looks like that. I find it difficult to define the recent noise of the universe as something other than the Smear Campaign. It makes little sense to guess who is behind it. Frankly, rather than participating in the fruitless Twitter war that there is no good reason for this situation, our team is focused on providing the stability that the industry currently needs. increase. In addition, we are wisely taking advantage of this market downturn – through continued product development and aggressive recruitment, others have been dismissed.
Some of the well-known companies in this area seem to be approaching bankruptcy, and the community is confused. In contrast, Nexo continues to function normally and even has enough liquidity reserves to provide support to these companies. We aim to restore public confidence and help our negatively affected customers and investors. Nexo is working with top traditional financial advisors and is ready to become a major player in future plans, the large-scale integration of crypto space.
Did you receive more information regarding the offer to Celsius?
There are several ongoing processes approached by Nexo to help provide liquidity to those facing solvency issues, but we cannot comment on the details at this time. However, we promise to be part of a solution that will bring about space consolidation and recovery of lending best practices.
