After Celsius, Nexo is troubled. Critics and the market are targeting Ponzian CrYpTo firms. Even tether is targeted.
NEXO’s clients allegedly liquidated
@otteroooo alleges Nexo speculates against its clients. Nexo would have liquidated its own clients, according to many sources.
Nexo accepts cryptocurrency deposits from Bulgarians. Celsius overuses the word “deposit.” Nexo can dispose of these unsecured loans as it pleases. Celsius-style.
4 million clients want to use their deposits to borrow in 40 fiat currencies.
Site says:
Nexo allows you borrow cash or stablecoins (5.9% APR) without a credit check. […] You can borrow $50-$2,000,000 […]. This service avoids taxing the borrower if he were to sell cryptos to borrow from a lambda bank.
When the market collapses, the clients’ collateral is liquidated.
Nexo is accused of utilizing client monies against them. Here’s the strategy:
1) Collect cryptocurrencies (particularly shitcoins, which lose 90% of their value in a bear market) through loan services or skyrocketing rates;
2) Sell clients’ cryptocurrencies to affect CEX.IO’s price;
3) Liquidate clients as collateral loses value.
@otteroooo thinks depositing bitcoins with Nexo “gives it firepower to influence prices lower.” Nexo knows what prices cryptocurrency must fall to be liquidated.
NEXO EX-EMPLOYEES CONFIRM THAT NEXO RUNS A PYRAMID SCHEME THAT PREYS ON EMPLOYEES
— otteroooo (@otteroooo) July 7, 2022
Retweet & like this tweet, then read on for the expose!
Nexo Part 4
🦦 🦦 👇🏼 👇🏼 🧵 🧵
These claims make sense when you consider the companies’ Ponzi-like returns. When you don’t know where the performance comes from, you’re someone else’s…
Nexo’s head of trading, Tom Stanev, was expected to secretly sell cryptocurrency, according to the anonymous twitter account.
Some unhappy consumers may sue. This involves requesting CEX.IO accounts to see if NEXO sold clients’ bitcoins.
Detach?
This week’s Wall Street Journal reported that hedge firms were short USDT. Millions of jobs would be created.
Genesis Global Trading chief Leon Marshal claimed hedge funds are trying to short tether.
The Terra-Luna stablecoin’s still-fresh scent attracts these money. Its implosion briefly shook other stablecoins’ pegs.
Tether (USDT) is 0.95 euros instead of 1 euro at this writing. Dollar-backed parity is respected.
Paolo Ardoino, CTO of Tether, knew of the hedge firms’ behavior. “They’re trying to provoke a panic after Terra/collapse,” Luna’s he said. We believe this was a concerted and sustained campaign by trolls to spread FUD.
Mr Ardoino denied that “Tether isn’t 100% covered.” He swore hedge funds would lose money. “Tether is the only stablecoin that has maintained dollar parity under pressure.”
Since Tether’s $42 million CFTC fine, speculations have persisted (CFTC). “Misleading claims and omissions” about Tether’s euro and dollar holdings.
Tether creates earnings by investing the peg guarantee money in government and multinational bonds. Opacity pushes hedge funds to test 66 billion dollars in reserves.
Tether is solvent and should survive this crisis. The abuses of Celsius and NEXO show it’s time to refocus on bitcoin instead of shitcoins that always end tragically.
