Crypto lender Nexo Signs Term Sheet To Acquire Another Struggling Crypto Platform Vauld
- ByStartupStory | July 6, 2022
According to reports, cryptocurrency lender Nexo is considering buying the cryptocurrency platform Vauld, which on Monday announced it was suspending operations (July 4). The purchase process has begun, and the London-based lender has signed an indicative term sheet. According to the firm, Nexo has been given a 60-day exclusive exploratory period under the terms sheet in order to perform due diligence.
Nexo co-founder Antoni Trenchev was cited as saying, “We have to examine what exactly is on their books and it’s going to take a little bit. However, we are the only ones examining them at the moment because we have the exclusive exploring time.”
Client withdrawals from Vauld will remain suspended for the time being. Depending on the results of its investigation, Nexo might restructure or refinance Vauld. If the cryptocurrency platform has certain assets staked or has made investments for a longer length of time, Nexo might supply Vauld with rapid liquidity by purchasing its assets or investments, according to Trenchev. If Vauld’s assets are destroyed, Nexo might replace them if it makes sense. When considering whether to intervene, Trenchev stated, “we have to look at it in the broad framework of whether we can restructure the firm so that it is running again, so that it is profitable within the Nexo umbrella, which as a company is lucrative, and whether we can accumulate that.”
The worldwide economic recession has severely affected the cryptocurrency sector, causing prices to fall. This led to Singapore-based Vauld becoming the most recent cryptocurrency platform to experience financial difficulties. The Coinbase-backed platform, which was established in 2018 by Darshan Bathija and Sanju Sony Kurian, supported over 30 cryptocurrencies and has agreements with exchange and custody partners like Binance and BitGo. Users could lock their cryptocurrency into fixed deposits that paid interest at a rate of up to 12.68 per cent. It assisted people in learning how to make money and increase their cryptocurrency fortune.
Vauld’s significant market share in India and Southeast Asia appears to be of greater interest to Nexo. Trenchev gave an explanation of the rationale behind the acquisition of Vauld, claiming that the platform has “great traction” in India and Southeast Asia, two important markets for Nexo. Vauld, meanwhile, has a positive outlook on the transaction. According to co-founder and CEO of Vauld Bathija, “joining the Nexo family immediately puts us 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.”
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