Will Nexo emerge as Vauld’s guardian angel?

Sahana Kiran
Source – Unsplash

The crypto-verse witnessed the fall of several projects during this bear market. The volatile market has forced several platforms to put a pause on their services. Just yesterday, Vauld, a crypto lending, and trading firm followed its counterparts and decided to halt trading, withdrawals, and deposits. With the ongoing fear surrounding failing crypto projects, the community was filled with anxiety. While speculations about the fate of Vauld began surfacing, another crypto lender, Nexo extended support.

As per a recent report from The Block, Nexo intends to acquire its rival Vauld following the latter’s latest move. Nexo has plans of acquiring nearly 100 percent of the Singapore firm. Acting swiftly, Nexo has reportedly signed an indicative term sheet that allows it to carry out its due diligence over the next 60 days before acquiring the platform.

While the final decision will be taken following due diligence, Nexo is speculated to come as a saving grace to Vauld. The London-based crypto lending firm has managed to garner an exclusive exploratory period.

Elaborating on the process, Antoni Trenchev, the co-founder of Nexo said,

“We have to view it in the overall context of if we step in, can we restructure the business so that it is functioning again, so that it is profitable within the Nexo umbrella, which as a company is profitable and whether we can accumulate that.”

Furthermore, Nexo would investigate if Vauld entailed assets that were staked for a longer period. Even long-term investments would be taken into consideration before Nexo would instantly provide liquidity. In addition to this, the firm would possibly replenish assets if it has been lost.

Nexo’s profit ‘philanthropic’ nature

While Vauld drowns in financial woes, several speculate that Nexo could be the only way out for the Singapore platform. The exact amount of loss is still under the wraps. Darshan Bathija the founder of Vauld revealed that the hole in their balance sheet was around “mid to high double-digit millions.”

It should be noted that Nexo has been coming to the rescue of similar platforms. Back in June, Nexo offered to help yet another one of its rivals Celsius. However, Celsius did not pay heed to the offer.

Vauld, on the other hand, seemed to be inclined to the offer. Speaking about Nexo’s potential acquisition of Vauld, Bathija said,

“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.”

Since Vauld has a strong presence in Southeast Asia as well as India, Nexo could be looking to attain control over these markets.