Leading crypto lending platform Nexo has made an unsolicited offer to acquire “any remaining qualifying” assets of rival Celsius Network after the latter suspended withdrawals due to adverse market conditions.
Nexo is in a strong liquidity and equity position to easily acquire any remaining Celsius qualifying assets, primarily their collateralized loan portfolio. We are preparing a Celsius proposal for this agreement and will announce it publicly. 5/
— Nexus (@Nexus) June 13, 2022
Nexo said it has sent a letter of intent to Celsius to acquire Celsius’ secured loan portfolio, brand assets and customer database.
Celsius suspends withdrawals
On June 13, Celsius Network sent an email notification to users that it was suspending withdrawals, swaps, and transfers between accounts due to adverse market conditions. The company said the move is part of its plan to ensure long-term stability and liquidity on the platform.
This announcement resulted in a 73% drop in the price of CEL, with the token trading at $0.21 at press time.
Celsius said the rewards will continue to accrue while the suspension is in place. The platform did not respond to a request for comment on the suspension.
Macroeconomic factors continue to affect cryptocurrencies
Celsius’ decision to stop withdrawals, swaps and transfers between accounts came after a significant drop in the cryptocurrency market over the weekend.
Bitcoin (BTC), the largest cryptocurrency by capitalization, is down 13.40% on the day to trade at $23,736.23. This price represents a 65% drop from the coin’s November 10 (ATH) all-time high of $68,692.14. The recent sell-off also saw the crypto market cap drop below $1 trillion to reach $968.84 billion at the time of writing.
This crash came after the US Department of Labor released its Consumer Price Index (CPI) data for the month of May.
Economists earlier predicted The CPI will remain constant at 8.3%. However, the latest release of the consumer price index showed inflation jumped to 8.6%, the highest inflation rate in the US in four decades.
Credit : cryptoslate.com