Not to be put in the same bag – June 13, 2022, Celsius Network said to be in hard under current crypto market conditions. After this announcement, the loan service (ready) of Celsius has decided to to block all withdrawals, exchanges and transfers. Celsius’ main competitors, such as BlockFi and Nexoheld on to to reassure their investors following this announcement.
BlockFi and Nexo Less Exposed Avoid Drama
According to some crypto analysts, the liquidity crisis that Celsius is currently experiencing would be due to its significant exposure to stacked ether (stETH). Indeed, a study of Celsius portfolios, carried out by larry cermak (The Block’s VP of Research), says Celsius owns a minimum 409 170 stETH.
However, recently, stETH has been facing liquidity problems on Curve Finance, a decentralized exchange. On this platform, stETH is exchanged against ETH usually in a ratio of 1:1. This report became imbalancewhich had the effect of creating a liquidity crisis pour Celsius.
In addition, The Block’s director of research, Eden Adouhas explained :
“Celsius owned so many stETH tokens that it is almost impossible to convert them back to ETH without finding a counterpart through an over-the-counter market. »
Very quickly, the competitors from celsius preferred to reassure Investors. They then claimed not to be, or very little, exposed to stacked ether. Indeed, the CEO of BlockFi, Zac Princeclaimed on Twitter that his company had absolutely no exposure to stacked ether.
At the same time, Kiril NikolovDeFi analyst at Nexo, said the company does not hold “only a limited number of stETH”.
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Nexo wants to help Celsius and its investors
After the suspension of all withdrawals from the Celsius network, announced on Monday, its main competitor Nexo a proposed one buyback of loans of Celsius. As such, a Nexo representative said to throw this lifeline at Celsius. Indeed, they “are aware of the repercussions for investors and the crypto community”.
Thus, in an open letter, Nexo made a formal offer to acquire the qualifying assets and absorb all of Celsius’ loans. The consideration of this offer for Nexo would be the gain of the Celsius customer database. However, as of the day of writing, Celsius has reject the offer made by Nexo. Celsius to June 20 to possibly change your mind.
Finally, Nexo confirmed that its financial situation was without risk. During an interview given to Coin Telegraph, Nexo declared that it was very transparent:
” [Nexo a été] the first cryptocurrency lender to publicly disclose its real-time books last September, and we have called on all of our competitors and responsible cryptocurrency platforms to follow our lead. »
To conclude this article on a more optimistic note, it is worth recalling that Nexo a throw a encrypted Mastercard for the payment of services in cryptocurrencies, last April.
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