Join Us on Google News
In a hint of the growing level of industry consolidation, larger rival Nexo has offered a lifeline to struggling bitcoin lender Vauld.
On Tuesday, Nexo said that it had entered into a term sheet with Vauld that gave the business 60 days of exclusive negotiations to consider an all-equity purchase.
If profitable, Nexo claimed it will reorganize the business and pursue development in India and Southeast Asia.
The Singapore-based company is supported by billionaire Peter Thiel of Silicon Valley and other businesses like Coinbase.
It’s the newest company to become entangled in the recent crypto-world crisis.
Another cryptocurrency loan company, Celsius, halted withdrawals for an indeterminate period of time due to “extreme market circumstances” in only the past month.
A cryptocurrency hedge firm called Three Arrows Capital filed for bankruptcy a few days after going into liquidation.
The millionaire who founded the cryptocurrency exchange FTX, Sam Bankman-Fried, has emerged as the sector’s lender of last resort.
Last week, FTX inked a contract giving them the option to purchase the cryptocurrency lending company BlockFi, while Bankman-quant Fried’s trading business Alameda Research also provided Voyager Digital, a troubled cryptocurrency brokerage that last week shut down completely, with a credit line.
When co-founder Antoni Trenchev was asked how much Nexo was ready to pay for Vauld, he said that it was “premature” to discuss a valuation at this time.
He said that he was “optimistic” that an agreement could be reached.
ALSO READ – ENS witnesses 200% increment in new registration
The head of Nexo told CNBC, “We are beginning the due diligence.” We will get 60 days of exclusive access before they release the books. All will be visible to you. Is a hole present?
Celsius received a letter of intent offer from Nexo in the past. Nexo has previously offered to purchase Celsius in a letter of intent, but the firm reportedly rejected the offer.
Several cryptocurrency companies have turned to their peers for assistance in the absence of a government in the hopes of receiving a bailout.
© Copyright 2022. The Coin Republic
Login to your account below
Please enter your username or email address to reset your password.