Crack the Vauld: Nexo Offers to Buy Out Struggling Crypto Platform

Nexo is offering its rival shelter amid intense crypto winter.

  • Nexo has ambitions to acquire 100% ownership of Vauld
  • The crypto lender had previously offered barely alive Celsius a buy-out option
  • Nexo made the move just a day after Vauld declared suspension of activity

Nexo appears to have a strong appetite for crypto platforms on the verge of liquidation, as the London-based crypto trading platform sent out a 60-day term sheet with preliminary conditions for the buy-out. Furthermore, Nexo is said to be one of the couple of companies in the industry that can still lend a helping hand to other firms.

A Proposal with Brotherly Sentiment from Nexo

As Tatiana Metodieva, Nexo’s Head of Corporate Finance & Investments explained: “We sympathize with all affected by the drastic market downturn. However, difficult times always teach us the importance of business model viability and prudent risk management.”

The Bitcoin Pitch Day 2022 Judge also added that “Nexо finds synergies with Vauld’s existing focus on Southeast Asia, an important and continuously growing market for the former’s flagship financial services.” Indeed, acquiring the Singapore-based Vauld would let Nexo expand further into the Southeast Asian & Pacific region.

Nexo Survived the Terra Luna Fiasco

Interestingly enough, Nexo was named among the crypto companies that are experiencing major difficulties since the Terra (LUNA) and Terra (UST) crackdown. The infamous depegging of the world’s most unstable stablecoin caused millions of dollars of losses for Nexo.

Ever since then, the tables have turned drastically. Terra Luna has gone to pieces almost twice now, and the bumpy launch of Terra 2.0 and trouble with authorities are the latest addition to Do Kwon’s problems. In contrast, Nexo managed to climb up to a solid position to offer bailout opportunities to companies that are nearly insolvent.

Deal or No Deal?

In contrast to the Celsius offer, there is a 60-day “exploratory period,” while Celsius had only 7 days to make up their mind. Besides, Nexo clarified that they have tried reaching Celsius twice and the first time “help was refused.” Since the 7-day period had already expired, it is unlikely that Celsius reached an agreement with Nexo.

However, it’s a different case with Vauld, as both partners put focus on the Asian market and Darshan Bathija, the CEO of Vauld, has already confirmed his stance in favor of the deal.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.