The ongoing cryptocurrency collapse has proved to be an alarming call for many investment firms dealing with digital assets. The same has happened with Three Arrows Capital (3AC). However, Crypto Lender Nexo has come forward to announce that they share no exposure with 3AC.
Nexo refused 3AC’s request for credit
The crypto hedge fund firm’s fate lies in the balance as the firm faces mass liquidation. This has increased the probability of the 3AC’s insolvency. In the meantime, Nexo mentioned that over two years ago, they declined Three Arrows Capital’s request for unsecured credit. However, they came to know that they acquired it from somewhere else.
Meanwhile, it mentioned that Nexo has just signed a partnership agreement with Three Arrows Capital over their NFT fund. However, it did not work out and they have $0 business and exposure with 3AC. Nexo informed that their customer liabilities stand at $4.9 billion as of June 15, 2022. It added that its assets exceed its Customer Liabilities.
However, the NEXO token’s price has dropped by more than 44% in the past 7 days. It is trading at an average price of $0.696, at the press time.
3AC leads to massive liquidation
As per the report, the crypto hedge fund firm has been liquidating its holdings. An alleged wallet associated with the 3AC liquidated over 15K Ethereum (ETH) just in one hour. It was mentioned that the firm has been liquidating its holdings from its other wallets. This has resulted in a continuous collapse in the ETH prices. The world’s second largest crypto price has dropped by over 38% in the past 7 days. It is trading at an average price of $1,120, at the press time.
Nexo added that it is obvious now that their approach was correct. This is the reason that their assets exceed their liabilities. The lending platforms have tried to differentiate themselves from others by taking a conservative lender approach.
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