Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,175 trillion. Bitcoin has increased by over 6% this week. Ethereum gained almost 17% over the past seven days. XRP is up by nearly 3% this past week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector increased the total value protocols (TVL) to around $44 billion. Crypto…
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Nexo Moves to Acquire Embattled Crypto Lender Vauld
Switzerland-based crypto lender Nexo has unveiled intentions of buying fellow lending platform Vauld. Nexo announced this news via Twitter on July 5, a day after Vauld halted operations due to financial challenges. Through this acquisition, Nexo hopes to better the crypto space and bolster its presence in Southeast Asia.
In a consolidation effort aimed at the betterment of the space, as well as the strengthening of our presence in Southeast Asia, we’ve entered exclusive talks with @VauldOfficial for the full acquisition of the Singapore-based company.https://t.co/AtsYQkEc8y
— Nexo (@Nexo) July 5, 2022
In a subsequent press release, Nexo said it signed an indicative term sheet with Vauld. This agreement will see Vauld offer Nexo a 60-day exclusive exploratory period regarding the acquisition intentions. This period will give Nexo the time to conduct due diligence before deciding whether it will go ahead with the acquisition.
Should the results of the initiated due diligence process prove satisfactory, Nexo plans to acquire up to 100% of Vauld. After the purchase, Nexo plans to reorganize future operations with a focus on expanding its presence in Asia.
Vauld CEO Darshan Bathija said:
Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.
Swooping In to Help Distressed Crypto Lenders
In the news release, Nexo said the current situation in the crypto market is similar to the Bank Panic of 1907. At the time, there was a lot of leverage in the banking system and many companies got into financial trouble.
Nexo believes the current situation requires capable and well-capitalized firms to step up and provide system solutions. The company believes it meets the above requirements and is well able to bail out beleaguered crypto firms.
Nexo CFA Tatiana Metodieva said Nexo sympathizes with all victims of the crypto winter. However, she believes difficult times impart lessons on the importance of business model viability and prudent risk management.
Metodieva added industry leaders would find their way out of the current turmoil. Nonetheless, she claims even industry leaders must exercise competitive strength, discipline, and uncompromising responsibility to customers.
This news comes after Nexo announced its intention to purchase Celsius Network after pausing operations due to extreme market conditions. Lastly, Celsius Network has not taken up Nexo on its offer yet, despite struggling to resume withdrawals, swaps, and transfers.
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
— Nexo (@Nexo) June 13, 2022
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