Nexo is allaying any fears that its business may face a transition arising from the possible collapse of crypto venture platform Three Arrows Capital (3AC).
As the future of the Celsius network is still uncertain and just weeks after the collapse of Terra, the crypto sector sees another firm’s business on the verge of an untimely death.
This is what crypto hedge fund 3AC is swirling around, whose troubles boil down to potential bankruptcy, pegged at reported liquidations by its lenders.
Commenting on the potential collapse of 3AC, pseudonymous crypto analyst Digitrading said:
8/x – 3AC is one of the largest borrowers/clients for lenders globally. Their collapse would transfer the economic risk to their lenders. PNL will bear the difference between how much they owe to the lenders in the liquidation of their collateral
— degentrading (@hodlKRYPTONITE) 15 June 2022
Nexo not exposed to 3AC
Nexo, while reaffirming its status as ‘safe’ from any possible repercussions, has come out to say that it has zero fund exposure to Singapore-based 3AC.
,Nexo has an exposure of $0 in Three Arrows Capital. Nexo has always distinguished itself from others as a very conservative lender with rigorous risk management and strict over-collateral requirements, regardless of the borrowers’ reputation.N,” said the firm.
In fact, Nexo’s only notable association with the hedge fund is through a partnership on an NFT fund. But in a statement shared on Wednesday, it notes that the collaboration that took place in December 2021 did not work as the fund failed to “take off”.
Nexo reportedly “rejected” 3AC’s request seeking an unsecured credit facility.
All Nexo has signed a partnership with Three Arrows Capital as their NFT fund, but it did not proceed and we currently have $0 turnover and exposure with them.
— nexo (@Nexo) 15 June 2022