Wednesday, September 28, 2022

Nexos to the Rescue, Offers to Buyout Celsius’ Loan Liabilities

Crypto lending firm, Nexos has made an offer to rescue Celsius following the latter’s suspension of withdrawals amid what it calls “extreme market conditions.” The offer was made in an official letter addressed to Celsius and was also shared on Nexo’s Twitter page.

Although the offer did not quote a price, Nexo is interested in acquiring Celsius’ remaining qualifying assets. Per the definition, this specifically includes the collateralized loan receivables which are secured by corresponding collateral assets, in addition to brand assets including its customer database.

In summary, Nexo, through its partners and affiliates will absorb Celsius of all its loans in exchange for the Celsius customer database amongst other things. It has given the Celsius team a seven-day window to respond to the buyout offer.

According to the tweet, Nexo was mindful of the possible repercussions for retail investors and the crypto community at large. It also stressed that it was in a solid liquidity and equity position to fulfill the terms of the offer.

While buttressing Nexo’s financial strength, its Decentralized Finance (DeFi) strategist Kiril Nikolov added that Nexo is in the process of de-risking its DeFi exposure.

The firm also added that while its team does not rejoice over other projects’ failures, some technicalities distinguish it from others. The firm uses a real-time audit for assets under its custody. This confirms how the company’s assets are more than its liabilities, proofing liquidity and assuring investors. It also encourages other projects to embrace this model.

Others join Nexo in the rescue of Celsius

Swan Bitcoin’s founder Cory Klippsten has also joined Nexo in offering a way out to rescue Celsius. He offered a life raft to interested Celsius community members. Cory had formerly tagged the Celsius network for being risky.

Many hope Celsius agrees to this offer of help to reduce the impact of its insolvency on the cryptosphere. It will also provide liquidity to investors on the Celsius network.

Recall that, Celsius in the early hours of today announced the suspension of withdrawals, swaps, and transfers on its platform. The move, which it said was to maintain stability, has caused a stir in the cryptosphere.

It also assured users it will resume operations as soon as possible as it weighs various options. The platform also reportedly transferred several of its assets to FTX, further adding to the underlying tension across the board.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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