Antony Trenchev, co-founder and CEO of the Nexo landing platform, compared the current cryptocurrency market crash to the banking panic of 1907. In a conversation with Bloomberg, he noted that more successful players had to come to the aid of their peers to prevent the industry from collapsing.

“Obviously, this reminds me of the Panic of 1907 when JP Morgan was forced to step in with their own funds and then get all their solver guys together to fix the situation. This was before his arrival. fedso there was no lender of last resort,” Trenchev said.

According to him, the market has developed a similar situation. The head of Nexo emphasized that the company aims to be part of a solution that will lead to the consolidation of the cryptocurrency industry.

He said the platform had been approached by three Wall Street “household” banks that wanted to “use their experience in paying customers to rectify the situation.” According to him, the industry is moving towards M&A– transactions and consolidation.

Earlier, Nexo announced that it is ready to buy its loan portfolio from rival Celsius. The campaign is valid until 20 June.

On June 13, 2022, the latter suspended withdrawals and operations on the platform “due to extreme market conditions”. According to experts, the real reason for what is happening is a “liquidity crisis” due to the company’s inability to pay customers.

Some described Celsius’ bankruptcy as almost inevitable, and the Securities Commissions of five US states began examining the company’s operations “on a “priority basis”.

Nexo also partnered with Three Arrows Capital (3AC) to develop an NFT-based loan product, but that product was never released. Trenchev noted that after that, the hedge fund approached the platform with a request for an unsecured loan, but was denied.

According to him, companies giving unsecured loans to 3AC should be worried. However, he believes the market will not see a “chain reaction” as the worst is over.

“I think what happened to them was the selling pressure we saw on Monday and Tuesday and the prices have already been priced in,” he said.

Recall that in April Trenchev predicted that Bitcoin would hit $100,000 by 2022.

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