Nexo is a London-based cryptocurrency lending company. They now want to acquire Vauld, a crypto platform that recently had to shut down due to some financial challenges. These challenges seem to have disappeared with the acquisition.
Take some worries away
However, before the acquisition, Nexo still needs to allay some of the customer concerns. It does not initially seem logical to take over a company with financial challenges. Also, all of Vauld’s users’ funds must be secured. Vauld CEO Darshan Bathija said the following in a statement: Tweet†
I understand that many of our customers are nervous about your money. We work tirelessly to ensure that your financial information is protected. We have signed an indicative term sheet with Nexo to acquire up to 100 percent of Vauld.
Strengthen presence in Southeast Asia
Nexo says the acquisition is primarily aimed at improving the crypto space and strengthening their presence in Southeast Asia.
Previously, Vauld had suspended all withdrawals, deposits and trading on their platform. The platform faced significant financial challenges. However, she immediately disclosed that she is investigating and analyzing all possible options, including possible restructuring options, that would best protect the interests of Vauld’s stakeholders.
Despite the efforts made, the company still faced financial challenges. According to the CEO, this was entirely due to a combination of circumstances, such as volatile market conditions, the financial difficulties of our key business partners that inevitably affect us, and the current market environment.
As of June 12 of this year, the company has logged nearly $200 million in customer withdrawals. The crypto market’s decline was due, among other things, to the collapse of Terraform Lab’s UST stablecoin, the Celsius network that interrupted withdrawals and Three Arrows Capital that failed to pay their loans.
In the last few days, the crypto market seems to be recovering again to a small extent. Where Bitcoin was briefly below $19,000, it is now well above $20,000. Although this is of course still far from his record, a recovery seems to have started. It is unknown whether this will continue or not. This is not trading advice.