Anxiety and fear have undoubtedly taken over the crypto market. The increased interest in the bears and the constant failure of various projects due to the criminality of their creators has increased the forefront. During a time like this, rumors of another project, Nexo, surfaced.
Crypto-lending platforms felt the heat, thanks to their failed counterparts. Over the weekend, Nexo was widely discussed on Twitter. However, this was not for all the right reasons. A Twitter user who mentions the name, @otteroooo claims that Nexo’s founders as well as their family members sucked up funds from charities.
In the Twitter thread, otteroooo claimed that Kosta Kanchev, a co-founder of Nexo, stole funds from HelpKarma, a charity crowdfunding portal as a manager of the same platform. All this was done to build “a palace as big as a high school”.
However, Nexo did not sit still. Following the increased engagement on the previously seen Twitter thread, the platform shared a blog post. In the blog post, the crypto-lending firm said,
“Several anonymous Twitter accounts use lies and distortion in yet another smear campaign against Nexo and take advantage of short positions in a troubled market.“
Furthermore, Nexo went on to list a variety of things that involve fake news. Circling back to the first tweet, the Twitter user apparently decided to go the clickbaity and emotional way to reach the audience. Following this, the firm shared a screenshot claiming that otteroooo was ready to sell its Twitter profile at the right price.
Nexus [NEXO] decreases by 6 percent
While these claims flooded in, Nexo dropped to a low of $ 0.65 earlier today. At the time of going to press, however, the asset was trading at $ 0.6813 with a daily drop of 5.49 percent. After a long run of volatility, the crypto market seemed to stabilize. However, NEXO was sinking and this has been speculated due to the above drama.
While the crypto-lending platform stood its ground, otteroooo remained untouched and stuck to its allegations. But the real victims are the audience and investors.
There have been so many failed projects over the past few months. Small investors have lost significant amounts of their hard earned earnings. Rumors like these often scare investors away from the market itself, which further deters the growth of the crypto-verse.
Nexo acknowledged the same and confirmed the reason for its refutation, saying:
“While Nexo is generally not involved in refuting blatant lies and smear campaigns, in the current environment of volatility and extreme conditions, we have listened to the blockchain community and their desire to briefly make a series of ridiculous allegations for the sake of transparency. address. . and clarity. ”
Terra’s whistleblower, FatMan, also supported Nexo, pointing out that otteroooo’s tweets were false.
In addition, FatMan claimed that he did not endorse Nexo. The Twitter personality has even asked investors to be careful about depositing funds in CeFi services. All he intended to do was put both sides out there.