In an interview, the CNBC CryptoTrader host Ran NeuNer spoke with Kalin Metodiev, the Head of Corporate Finance at Nexo, a crypto-backed loaning platform. The focus of the interview was the last week’s news of Nexo sending a letter to Salt Lending, offering to buy all its assets in the wake of controversies chasing the firm.
Salt Lending is a blockchain-backed lending platform. Last week, the CEO of Salt Lending, Shawn Owen, left the firm providing no prior information or explanation for the same. A cryptocurrency-backed loan portfolio of $40 million was accumulated by the CEO since it began its operations last year.
As stated by Metodiev, the information regarding the offer letter to Salt Lending is only partially correct. He said that Nexo only sent an official inquiry and a letter of intent to Salt to acquire the ‘qualifying assets’.
By qualifying assets, Nexo means that they offered to acquire the assets which would be in line with Nexo’s lending criteria, in case Salt is interested to arrange additional security for its operations. Metodiev also added:
“The reason why we did this is quite obvious. There has been some buzzing communication on the internet that there might be some kind of a disorder at Salt at this time and obviously, we are not here to make any allegations or comment on these allegations. We came in with our pure intention to help.”
The corporate financer also mentioned that during the fuss going on in Salt’s community, the members have received no regular communication regarding the abrupt changes in the company. He revealed that the community members are approaching Nexo to ask for liquidity.
Since the entire industry is still in the infant stage, Metodiev and Nexo believe that the community should always be there for each other and offer assistance to competitors. He also explained that the industry is large enough to look after everybody’s interests and provide them with opportunities.
Here, NeuNer stated that Nexo, apart from helping the community, is also helping its balance sheets. Moreover, the interviewer marked that Nexo saw an opportunity to capitalize on Salt Lending base, given that the competitors are facing troubles within their company.
To this, Metodiev replied by saying that he does not believe that it is a ‘proper’ way to analyze the situation, and is quite extreme. Once again, Nexo’s official made a clarification that in the world of finance and banking, banks often provide liquidity to each other. Moreover, overnight deposits are a large part of the intrabank market. He furthered his opinion and said:
“In this particular case, we did not say that we want to acquire the company. I think this is important for us to make this distinction. We didn’t say that we were coming to rate their customer base. All we said was that we have liquidity at this time, we’re interested to lend more of it, of course in line with our lending criteria and our KYC, and AML standards, which will not compromise.”
Subscribe to AMBCrypto’s Newsletter
XRP and XLM Price Analysis: Rival coins show bearish pressure of slightly different magnitudes
Monero [XMR] paired with Bitcoin [BTC] and Ethereum [ETH] on KuCoin
Bitcoin [BTC]: Nouriel Roubini connects the fall of ‘criminal ICOs’ to the fall in BTC and ETH prices
Bitcoin [BTC] and Ethereum [ETH] spend millions to secure network against 51 percent attacks
Ethereum [ETH]’s Vitalik Buterin says he is ‘pretty sure’ that more ERC20 tokens will be released
Craig Wright’s Twitter account suspended after threatening harassment and libel lawsuits
Bitcoin [BTC] critic Agustin Carstens warns against central banks issuing virtual currencies
Qtum partnership with Zeus enables users to trade cryptocurrency on Apple Pay, Samsung Pay
Bitwise’s report to SEC suggests unregulated crypto exchanges fake 95% of Bitcoin [BTC] trading volume
Tron [TRX] DApp Weekly report: Justin Sun’s cryptocurrency lays down claims that Tron is better than Ethereum and EOS
Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report
- Bitcoin Cash
Bitcoin Cash [BCH] advocate Roger Ver shows his support for Silk Road founder Ross Ulbricht again
Ethereum [ETH] core dev clarifies acceptance of ProgPow in future hard forks
Bitcoin Lightning Network will never be production ready, says Bitcoin Cash [BCH] proponent Rick Falkvinge