There is a glimmer of hope for the latest victim of the bear market. Following reports of insolvency, Celsius Nexo is offering a buyout.
A Nexo spokesperson told Cryptooshala that Nexo is trying to do the “right thing” as they are “mindful of the implications for retail investors and the crypto community.”
Celsius suspended all network findings on Monday; users cannot access their funds. in the open letter, Nexo has made a formal offer to acquire the respective assets of Celsius Network following their withdrawal freeze. The letter says:
“Nexo, its partners and affiliates may easily purchase from Celsius any or all of the relevant outstanding secured loan receivables secured by their respective collateralized cryptocurrencies, subject to compliance with Nexo’s risk management and collateral requirements.”
In short, the Nexo team had to gobble up all of the Celsius credits and get their customer database. The Nexo team has given the Celsius team seven days to respond as the offer expires on June 20th.
In a tumultuous weekend of market action, Nexo’s first call for help was rejected by the Celsius team on June 12:
“Yesterday [June 12] we reached out to the Celsius team to offer our support, but our help was denied.”
Separately, Nexo assured investors that the funds are safe. A Nexo spokesperson told Cryptooshala that it was “the first crypto lender to publicly open its books to the public in real time back in September and invited all of our competitors and responsible crypto platforms to follow suit.”
Competitors including Ledn, a Bitcoin (BTC)-only lending and savings platform, have issued similar statements to reassure investors. On twitter Ledn general that customers’ investments are safe. BlockFi CEO Zach Prince tweeted that his business is up and running usually. Ledn, Nexo and Blockfi were previously open to discuss their business models with Cryptooshala.
Mashinsky says ‘Wall Street sharks’ are circling Celsius and other projects
Nexo isn’t the only company to come to the rescue of Celsius. Bitcoin maximalist Corey Clippsten, founder of Bitcoin-only exchange Swan Bitcoin (who previously called Celsius risky) proposed “life raft” for Celsius investors.
NO MORE THAN 1 BTC MINIMUM for @swanbitcoin life raft. Free Swan Private membership (worth $3,000) for the first 1,000 Celsius members who DM me.
– Corey Clippsten (@coryklippsten) June 13, 2022
It is too hard for some commentators, such as analyst Will Clemente, to ignore the comparison between the Moon’s explosion and Celsius’ apparent failure:
Am I guessing the Moon and Celsius will be our two victims to the crypto gods in this bear market?
— Will Clemente (@WCclementeIII) June 13, 2022
As Klippsten and Nexo have made clear, the crypto community is trying to limit the immediate impact of Celsius’ declared insolvency. This was announced by the representative of Nexo.[Nexo] hopes Celsius will accept this bailout and as few investors as possible will be affected.”
Credit : cointelegraph.com