Nexo Offers Celsius Buyout as its Rival Platform Suspends Withdrawals
Cryptocurrency lending platform Nexo said it is interested in buying certain assets from rival Celsius, for example its collateralized loan portfolio.
In response to Celsius’ decision to suspend withdrawals and transfers, citing extreme market conditions, fellow cryptocurrency lending platform Nexo stepped up saying it could buy certain assets, in particular the collaterized loan portfolio.
On Monday, in a letter, Nexo offered Celsius to take over a large share of what is left:
” A substantially part of or all of the remaining qualifying assets … comprising mostly or fully of collateralized loan receivables secured by corresponding collateral assets, as well as brand assets and the customer database.”
The Switzerland based exchange, made the offer in a letter published on Twitter.
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
https://platform.twitter.com/widgets.js
In the announcement, Nexo added:
“We have been operating a sustainable business for 4+ years, based on solid fundamentals and prudent risk management. Nexo is in a strong liquidity and equity position as evidenced by the only real-time reserves attestation of a blockchain finance company.
Whereas Celsius only audits its performance on a weekly basis, Nexo offers a more secure real-time audit of its custodial assets. It recently disclosed to have $6.2 billion in customer liabilities with assets held to an amount in excess of the amount.”
At the time of writing, Celsius management has not published a response.
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Source: igaming
