Nexo preps for Celsius buyout; Offer stands till 20 June

Lavina Daryanani
Source: Coingape

Alongside the market-wide weekend crash, the Celsius episode managed to shake the crypto landscape even further. As reported earlier, the crypto staking and lending platform had been condemned for its poor management of funds. Amidst the chaos and fear, Celsius announced a few hours back that it was putting a hold on withdrawals, swaps, and transfers due to “extreme market conditions.”

However now, in what is the latest development, rival crypto lending platform Nexo has brought to light that it is preparing to offer to buy certain assets—including its collateralized loan portfolio—from Celsius.

What Nexo’s announcement entails?

Nexo took Twitter to announce that it had reached out to the Celsius team yesterday itself to offer support—as a sign of goodwill and to support the digital asset ecosystem—but was “refused.” It also stated that its team has never cheered for the failure of any blockchain business and stated that “much” can be done to “help” Celsius’ clients.

With respect to its plan and intention, the tweet highlighted,

“Nexo is in а solid liquidity and equity position to readily acquire any remaining qualifying assets of Celsius, mainly their collateralized loan portfolio. We are putting together an offer to Celsius to that accord and will communicate it publicly.”

In fact, it has also put together an offer to Celsius via a letter of intent. The same noted,

“Nexo, its partners, and affiliates could readily acquire from Celsius part or all qualifying, outstanding collateralized loan receivables secured by their corresponding pledged cryptocurrency collateral, subject to Nexo’s risk management and collateral requirements.”

With respect to the bid expiration, the letter brought to light,

“The offer is valid until 4:30 a.m. UTC on June 20, unless accepted or rejected by the seller, or withdrawn by the buyer prior to that time.”