Nexo continues progress as competitors lag

The phrase “crypto lending” has taken on somewhat of a dirty meaning this year.

The collapse of Terra in May sparked a wave of contagion which spread across the industry. This ultimately caused many firms to go under, several of whom were in the CeFi space – most notably Celsius.

Nexo is managed differently

Nexo, who submitted a bid for Celsius’ assets shortly after they suspended customer withdrawals – an incredibly smart move which I wrote about here – has had no such issues. Indeed, the only concern on their part has been to be associated with the irresponsible CeFi players who mismanaged their assets so egregiously.

I interviewed Co-Founder and Managing Partner of Nexo, Antoni Trenchev, back in April – only a couple of weeks before the market was plunged into chaos off the back of the Luna death spiral. Trenchev was adamant at the time that their overcollaterised lending model would not be altered in the pursuit of extra yield. Looking back now and considering what happened to others in the industry, it proved to be a very important stance.

The reason Nexo has stood the test of time in the volatile crypto market is our no-exceptions overcollateralized lending model. We don’t lend out funds without collateral even to our largest and most trusted partners. As such, we do not have any plans on changing this approach in the near future.

Buyback programme

Nexo has further signalled it is on track with its long-term goals with the continued progress of its Buyback initiative. This week they announced the latest allocation of $50 million.

The allocation of an additional $50 million to our buyback plan is a result of our solidly liquid position and Nexo’s ability and readiness to spur on its own products, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry

As the market continues to reverberate amid the turbulent macro climate, geopolitical situation and wider negative sentiment, Nexo is doing what it can to fortify the long-term health of its ecosystem.

Right now, our investors and clients require solid ground to walk on, and our third token buyback ensures this added stability as we emerge from the latest market rollercoaster

No matter what way you swing it, the fulfilment of the latest buyback plan is a definite sign of strength and further signal to the market that it should not be considered anywhere near whatever Celsius was.

For Nexo, it’s a shame that many tarnish the industry with the same brush after the last few months. Then again, it’s only natural – investors are now more cautious and alert to risks. It’s a good thing for the market overall. And those investors will no doubt be noticing the continued movement of Nexo in the right direction.

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