Nexo Proposes Celsius buyout after the company stopped withdrawals recently as we reported in our cryptocurrency news.
The lending paltform Nexo proposes a bid to acquire certain remaining qualifying assets of the Celsius Network. The digital asset manager Nexo responded to the news of Celsius pausing withdrawals by tabling the proposal for a buyout of the company’s liquid assets. Pointing to what seems to be insolvency, Nexo took to Twitter to post a letter of intent outlining interest to acquire certain remaining qualifying assets that are collateralized loan receivables and secured by corresponding collateral assets, customer database, and brand assets of the business of Celsius Network LLC. The letter reads:
“Nexo has been an independent observer of the latest developments at Celsius and is mindful of the detrimental repercussions for retail investors and the blockchain community at large. Nexo’s underlying sustainable business model has allowed it to maintain financial stability in any market circumstances and as a result, the company is in a solid liquidity and equity position to help mitigate the consequences of Celsius’ distressed state.”
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
The company added that the subject to its risk management and collateral requirements could acquire from Celsius part of the outstanding and qualifying loan receivables secured by the corresponding pledged crypto collateral. According to Nexo, the offer will remain in effect for a week unless accepted or rejected by Celsius. The New York-based Celsius announced that it will be freezing all withdrawals and transfers between the accounts on Sunday night. The company claimed that it is taking the action to put Celsius in a better position to honor its obligations.
.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
— Celsius (@CelsiusNetwork) June 13, 2022
The CEL token underpinning the Celsius platform responded to the announcement by dropping 70% in one hour from the high of $0.49 to $0.15. CEL was changing hands at $0.19 and in the meantime, Nexo shares a similar business model with Celsius but it also saw its NEXO token drop by 25%. The developments around Celsius are going to add more woes for the crypto investor as the markets got deeper into the red over the weekend and BTC dropped by 23% in value in the past week and it is now being traded below ,500.
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Other major cryptocurrencies posted massive losses too with the likes of Solana, DOT, and Ethereum all dropping over 30% in the past week.
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