{"id":12778,"date":"2022-06-15T17:52:55","date_gmt":"2022-06-15T17:52:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/nexo-assures-users-amid-3ac-insolvency-fears\/"},"modified":"2022-06-15T17:52:55","modified_gmt":"2022-06-15T17:52:55","slug":"nexo-assures-users-amid-3ac-insolvency-fears","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/nexo-assures-users-amid-3ac-insolvency-fears\/","title":{"rendered":"Nexo assures users amid 3AC insolvency fears"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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Nexo is dispelling any fears that its business will likely suffer contagion arising from the potential collapse of crypto venture platform Three Arrows Capital (3AC).<\/p>\n

With Celsius Network\u2019s future still uncertain and just weeks after Terra\u2019s collapse, the crypto sector is seeing another firm\u2019s business teeter on the verge of an untimely demise.<\/p>\n

This is what\u2019s swirling around crypto hedge fund 3AC, whose troubles boil down to possible insolvency pegged on reported liquidations by its lenders.<\/p>\n

Commenting on 3AC\u2019s potential collapse, pseudonymous crypto analyst degentrading said:<\/p>\n

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8\/x \u2013 3AC is one of the biggest borrowers\/clients for the lenders globally. Their collapse would transfer the economic risk to their lenders. The lenders will bear the pnl difference between how much they are owed versus what they get in liquidating their collateral<\/p>\n

\u2014 degentrading (@hodlKRYPTONITE) June 15, 2022<\/a><\/p>\n<\/blockquote>\n

Nexo not exposed to 3AC<\/h2>\n

Nexo, reaffirming its status as \u2018safe\u2019 from any would-be reverberations, has come out to say it has zero funds exposure to the Singapore-based 3AC.<\/p>\n

\u201cNexo has $0 exposure to Three Arrows Capital. Nexo has always differentiated itself from others as being a very conservative lender with stringent risk management and strict over-collateralization requirements, regardless of borrowers\u2019 reputatio<\/em>n,\u201d the firm said.<\/p>\n

Indeed, Nexo\u2019s only notable association with the hedge fund is via a partnership on an NFT fund. But in a statement shared on Wednesday, it notes the collaboration that was struck in December 2021 did not work as the fund failed to \u201ctake off.\u201d<\/p>\n

Nexo also allegedly \u201cdeclined\u201d a request from 3AC seeking an unsecured credit facility.<\/p>\n

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All Nexo has ever done with Three Arrows Capital is sign a partnership with their NFT fund, but it did not take off and we currently have $0 business and exposure with them.<\/p>\n

\u2014 Nexo (@Nexo) June 15, 2022<\/a><\/p>\n<\/blockquote>\n<\/div>\n