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Cryptocurrency lending firm Nexo is consulting with banking giant Citigroup as it plans to buy rival platforms hit by the recent market downturn. This according to a company blog post.
The announcement states that Nexo intends to move forward with a mass consolidation of the crypto industry through mergers and acquisitions:
“In light of all this, the crypto space is about to enter a phase of mass consolidation which has already begun with the remaining solvent players, like Nexo, expressing their readiness to acquire the assets of companies with solvency issues in order to supply immediate liquidity to their clients and relief to the entire industry. “
The blog post detailed:
“As a leader in blockchain-based finance, our team feels an obligation to the crypto community and, most importantly, to the retail investors that would be hardest hit by this panic. Our drive to protect investors goes deeper than words as we have, from the very first signs of trouble in early June, begun conversations about possible relief plans”
Antoni Trenchev, Nexo’s co-founder and managing partner, said:
“We have been approached by multiple Wall Street banks and decided to officially explore the opportunities for acquisition to help stabilize our nascent industry.”
The news comes after lending platform Celsius Network suspended customer withdrawals, citing extreme market conditions, leading to speculation of insolvency.
In response Nexo stepped up saying it could buy certain assets, in particular the collaterized loan portfolio, and made a formal offer.
Nexo’s native token, NEXO, is currently trading at $0.6633, according to CoinMarketCap, down 4.65% over the past 24 hours.