Crypto asset lender Nexo warned in advance of price plunge
The spread of the new coronavirus and the recent bitcoin bull market have been a stress test, so to speak, for crypto asset lending service companies. Bitcoin plummeted on the 19th, but it seems that the lending companies were ready for it. The price drop was not as steep as the plunge seen in March 2020, and was simply the result of “excessive leverage,” said Antoni Trenchev, co-founder of lender Nexo. There was a lot of leveraged trading, which is why the drop was so big,” he said. Now it’s been cleaned up and there’s no longer excessive leverage. That’s the reason for this recovery.” Warning to Prepare for Downturn
In late April, Celsius took to Twitter to tell customers to add crypto assets to their accounts in case of a margin call and warned them to prepare for a sharp drop in the market.