Nexo claims “smear campaign” ignores its attempts to aid insolvent companies

There was no specific catalyst, rather Nexo continuously dedicates efforts to increasing its insurance and various other security features.This was an ongoing process for many months through our partnerships with BitGo, Ledger, Fireblocks, Bakkt and other custodians, which came into fruition now.

The insurance applies to all custodial assets on Nexo. Our custodians maintain segregated wallets for each of their clients – a security architecture engineered to prevent breaches affecting more than one wallet. This means that in the event that something happens to these assets under the care of our third-party custodians, Nexo and our clients by proxy would be fully protected.

The insurance applies to all custodial assets on Nexo. Our custodians maintain segregated wallets for each of their clients – a security architecture engineered to prevent breaches affecting more than one wallet. This means that in the event that something happens to these assets under the care of our third-party custodians, Nexo and our clients by proxy would be fully protected.

No. Nexo has an impeccable track record for security and risk management, we have never been hacked or lost clients’ funds, and thus have never had to rely on our insurance.

This type of insurance is fairly common in the blockchain space, yet Nexo is one of the players with the highest insurance on custodial assets, distinguishing us from our competition. This along with our other fundamental practices like strictly collateralized loans, a third-party real-time attest of our finances, prudent risk management, and the proactive procuring of licenses globally, has earned us the reputation of the most security-focused lender.

This type of insurance is fairly common in the blockchain space, yet Nexo is one of the players with the highest insurance on custodial assets, distinguishing us from our competition. This along with our other fundamental practices like strictly collateralized loans, a third-party real-time attest of our finances, prudent risk management, and the proactive procuring of licenses globally, has earned us the reputation of the most security-focused lender.

Announcing a partnership in general is a pretty substantial commitment. So for some of the leading institutions in the space like BitGo, Fireblock, Bakkt and Ledger – the names speak for themselves – to publicly work with Nexo means all these entities have done their due diligence on our business and are confident everything is as it should be. Beyond our work with the aforementioned custodians, Nexo also has collaborations with the likes of MasterCard, Fidelity, and many other household names. These institutions are not ones that would permit us to idly use their names.

It would appear so, wouldn’t it? We find it hard to define the recent noise in the space as anything other than a smear campaign. There’s little sense in speculating over who might be behind it. Rather than engaging in fruitless Twitter wars, that, frankly, this situation does not have the traction to warrant, our team is focusing its efforts on providing the stability our industry needs right now. What’s more, we’re using this market downturn wisely – through continuous product development and active recruitment while others are laying off.

A few of the better-known companies in the space are seemingly close to insolvency and the community is in turmoil. In stark contrast, Nexo continues to function normally and even has sufficient liquidity reserves to offer aid to these companies– we aim to restore public confidence and help their adversely affected clients and investors. Nexo is working with top-tier advisors from traditional finance and we are poised to be a key player in what appears to be coming, namely, a mass consolidation of the crypto space.

There are several ongoing processes for which Nexo has been approached to help with the provision of liquidity for those facing solvency issues but cannot currently comment on the details. We are, however, committed to being part of the solution that will result in a consolidation of the space and the restoring of best practices in lending.