Centralized lending and borrowing platform Nexo has signed an “indicative term sheet” for the potential acquisition of Vauld.
An indicative term sheet is a non-binding agreement establishing business terms and conditions between a proposer and borrower.
Track live crypto price of 10000+ coins!
In this case, Nexo has an exclusive two-month period to conduct due diligence to acquire 100% of the company. By press release, Nexo stated that completing this phase would lead to reorganizing Vauld and escalating its presence in the Southeast Asian markets.
“Nexo a 60-day exclusive exploratory period related to its intended acquisition of Vauld, pending a satisfactory outcome of the initiated due diligence process.”
Vauld CEO states he will protect users’ interests
On July 4, the Vauld management team stated that the “volatile market conditions” have forced the platform to suspend withdrawals, trading, and deposits immediately.
It also enlisted the help of financial and legal advisors to provide counsel.
In both the statement and on social media, Vauld CEO Darshan Bathija reiterated his intent to protect the interests of Vauld users and stakeholders during this challenging period.
“We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vauld’s customers and stakeholders.”
Nexo steps in
The bear market has seen total market cap outflows top $1.296 trillion since the start of 2022. The brutal conditions have seen many crypto platforms struggle under pressure.
However, Nexo’s conservative approach to risk management has positioned the company well amid the market turmoil. Nexo’s head of corporate finance and investments, Tatiana Metodieva, said companies like Nexo would help navigate the crypto industry out of the current crisis.
“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.”
Bathija responded positively to Nexo’s approach, stating a deal would allow his company to fulfill its fiduciary obligations to users and open up a new chapter in Vauld’s future.
“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.”
On June 13, when Celsius publicized its liquidity problems, Nexo offered to buy the company’s assets – a deal that Celsius turned down.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: