Nexo reveals plans to buy Vauld

Embattled cryptocurrency lender Vauld may be bought out by better-faring competitor Nexo.

Nexo announced earlier today that it had signed a term sheet with Coinbase, which is involved with Vauld, according to which Vauld’s assets may be purchased by Nexo.

Based on this document, Nexo has a 60-day exploratory period during which it can decide whether acquiring Vauld is worthwhile.

In doing so, Nexo would need to navigate a delicate context, as Vauld stopped withdrawals from the platform, diminishing consumer confidence in its products and ability to deliver a safe and reliable product.

Should Nexo take control, it would need to put forward capital to make sure that consumers’ needs are met.

Nexo does intend to acquire 100% of Vauld, however. The company also wants to make sure that the acquisition will result in strengthening Vauld’s presence in the Asian market.

This is not the first time that Nexo has tried to purchase a troubled competitor. Cryptocurrency lenders began experiencing trouble in June with Celsius Network becoming the first big one to stop withdrawals. Vauld followed just recently.

There is no clarification on whether Nexo and Celsius’ negotiations have been successful, though.

Nexo will remain focused on its current attempts to acquire its competitor, this would require a proper assessment of the company’s financial standing.

Vauld said that consumers had withdrawn more than $198m in a short period of time that resulted in added stress on the company attempting to remain operational while servicing customer needs.

However, continued withdrawals from the platform prompted it to act more restrictively, incurring consumer wrath.

If you want to use your cryptocurrencies recreationally, just go to 1xBit, Bitcasino or FortuneJack which will never deny you a withdrawal.

Source

Updated: 07/05/2022 — 11:00