The cryptocurrency market is facing pressure from regulators. Nexo is one of those who have problems with this. Meanwhile, crypto lending platform Nexo has withdrawn a large amount of WBTC from MakerDAO. Crypto analytics firm Santiment has announced that the amount of Wrapped Bitcoin (WBTC) locked in MakerDAO has dropped drastically after this draw.
Nexo pulls Wrapped Bitcoins (WBTC) from MakerDAO
cryptocoin.comAs you follow, crypto lending platform Nexo is having legal trouble with multiple government regulators. Blockchain analytics firm Santiment says Nexo has pulled a large Wrapped Bitcoin (WBTC) division from decentralized finance (DeFi) platform MakerDAO, following these problems.
Santiment says that the massive withdrawal of Nexo from MakerDAO has removed almost half of all WBTCs from the platform. He also notes that there will likely be more ‘big moves’. WBTC is an ERC-20 token pegged to the Bitcoin price that allows users to participate in DeFi events with a Bitcoin-based asset on Ethereum. Santiment makes the following statement on the subject:
Nexo made a big move and took about 50% of the WBTC held in MakerDao. Also, he plans to probably do more later. That left $120 million in WBTC, which remained locked in CDPs (collateralized debt position). We’ll be watching for signs of what Nexo plans to do with its free assets.
Nexo in trouble with regulators of 8 states
Last week, state regulators in California, New York, Washington, Kentucky, Vermont, South Carolina, Maryland and Oklahoma targeted Nexo. Regulators alleged that Nexo violated securities laws with its Earn Interest Product (EIP).
Nexo says it is working with regulators on the matter and no longer holds US accounts and EIP balances since the US Securities and Exchange Commission (SEC) announced its stance on interest-bearing accounts of crypto lending platforms. Nexo made the following statement on the subject:
We work with US federal and state regulators. Given the current market turmoil and the bankruptcies of companies offering similar products, we understand the willingness of interest-bearing product providers to fulfill their investor protection duties by examining past behavior.
Meanwhile, analysts are worried about NEXO price if regulatory pressure in the US continues. Suspicions are growing that Nexo is facing a Celsius-like bankruptcy. Because the Nexo company holds almost the entire supply of NEXO tokens. Celsius Network also owned more than 50% of its native token CEL. Because of these risks, they talk about the risk of losing half of the altcoin’s market value.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.