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Nexo’s official on the crypto-bank’s offer letter to its rival Salt Lending

Priyamvada Singh



Nexo's official on the crypto-bank's offer letter to its rival Salt Lending
Source: Pixabay

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.”

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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.