Skip to main content

Crypto isn't having a Lehman moment, according to the Nexo co-founder

 


The collapse of stablecoin TerraUSD (UST) has caused panic among stablecoin and general crypto market investors. While the Terra Luna Foundation has already announced a “recovery plan”, it has not yet impacted UST and LUNA prices as they are still in decline just like the general crypto market.


Do Kwon and TerraUSD backers had previously approached Nexo and asked it to support the UST stablecoin, but Nexo declined. When asked why they declined, Nexo co-founder Antoni Trenchev said in an interview with Bloomberg:


"I can't say much about the details of a rescue plan that's not finalized, nor do I want to get involved. I wish you good luck. We have made a decision at Board level that we do not believe it is prudent to interfere at this time. If they come up with another suggestion that we think makes more sense, we might reconsider. But at the moment we are holding back.”


The likelihood of the crypto market recovering

Although the TerraUSD collapse will most likely affect algorithmic stablecoins and not asset-backed stablecoins like Tether, it is being described by some as possibly the “Lehman moment” for crypto. Some crypto billionaires like SC, Michael Novogratz, and Sam Men Freed have lost 70%, 80%, and 90% of their fortunes in the past few weeks. But when Trenchev was asked by Bloomberg's Matt Miller if he thought this was a problem for the crypto industry as a whole, Trenchev said:


"I don't think it's a Lehman moment. Of course it's not the prettiest of appearances, but we have one or two such moments a year. Remember the ban in China last year and the drop of up to 50% the year before when we had Covid. So this time it's different because there are only a limited number of providers. On the Nexo platform and on our offerings there are up to 4 million retail users and a very large institutional clientele and I don't think they are selling as much as they are in 2020 or 2021. I think the pressure that BTC is experiencing at the moment, is the liquidation of the vast BTC reserves accumulated by the Terra Foundation. This is what puts pressure on the market. I'm curious if the 25,000 USD will hold up. Unless,


When Trenchev was asked to elaborate on when he thought the large-scale purchases would happen, he replied: 


“I think around 20… not until those foundations begin to swell, which we estimate should be soon. So $25,000 per bitcoin or worst case $20,000 should be the tipping point”

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Popular posts from this blog

JPMorgan: "Secret" Access to Six Crypto Funds

  Investment bank JPMorgan now offers access to six different crypto funds from Grayscale, Osprey Funds and NYDIG. The investment bank JPMorgan has not followed the winged phrase “do good and talk about it” this time.  She secretly, quietly, and quietly gave her institutional customers access to six crypto funds.  In the most recent step, the bank's private customers will now have access to a new Bitcoin fund.  The investment firm New York Digital Investment Group (NYDIG) launched this.  This Stone Ridge Bitcoin Strategy Fund offers exposure to Bitcoin through the futures markets. Last month, JPMorgan opened access to the Grayscale Bitcoin Trust, such as the Bitcoin Cash Trust, the Ethereum Trust, and the Ethereum Classic Trust.  Investing in the Osprey Bitcoin Trust was also made possible.  However, the bank's investment advisors are not allowed to proactively offer their clients to invest in these funds.  According to  Business Insider , JPMorgan will only conduct the transac

Polkadot Forecast - Polkadot is about to erupt!

 Polkadot price has been in a downtrend since the end of 2021, since November 4th to be precise. But could the downward trend now come to an end? The price formed a bearish trend line and reached an important level. Because of this, the course will soon have to decide where the journey should go in the future! The Polkadot price formed a trend line during the last recent descent which has steadily rejected the course, which is why the price has fallen as Next. As long as the price is below the trend line, we do not expect prices to rise. Instead, we assume that prices will continue to fall. At a higher level, Polkadot is still in an uptrend as we have not broken below the recent low. This is located at around $10.50. As soon as we fall below this price level, we assume a longer-term bear market. The polkadot has hit the $16.29 support and is currently finding support at that price level. As the downtrend line heads towards resistance, Polkadot price will soon have to decide whether to

The future of Cardano - We can look forward to these 2 developments

Cardano attracted a lot of attention in 2021.  The "Ethereum killer" has temporarily taken the position 3 of the most valuable crypto currencies behind Bitcoin and Ethereum and thus came on the map of more and more crypto investors.  But what does the future hold for Cardano?  We can look forward to these 2 developments soon. The future of Cardano - “Ethereum Killer” is evolving Cardano has been one of the most popular cryptocurrencies in the past few months.  The ADA token even rose to 3rd place among the most valuable coins by market capitalization.  In particular, the constant development of smart contract functions caused the price to skyrocket in the fall.  The network impresses with its extremely sophisticated technology, which Ethereum can outperform in the area of ​​security, among other things. With the newly developed Smart Contract functions, Cardano can now also benefit from the growing markets for NFTs and DeFi.  But in the past few weeks, other networks, especia