The Singapore-based crypto lending platform Vauld rejected Nexo’s recently updated terms and conditions. On December 26, Bloomberg reported that acquisition talks between Vauld and Nexo were not settled. The firm’s moratorium has been extended to January 20, 2023. So there will be time for both companies to settle an agreement.
This summer, after experiencing a liquidity crisis and volatile market conditions, Vault decided to halt the withdrawals on the platform on July 4. Meanwhile, investors and users faced difficulties withdrawing and trading on the platform.
Darshan Bathija, CEO of Vauld, said on the company’s website, “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.”
Vauld’s major competitor, London-based crypto lending platform Nexo, is ready to acquire and help the falling company. It signed a term sheet with Vauld to purchase a 100 percent stake. With the help of the acquisition, Nexo aimed to expand its business in Asia as Vauld is based in Singapore, and most of its team is from India.
What went wrong with Vauld?
Vauld was founded in 2018 with more than 275 coins on the platform. The Singapore-based crypto lending platform provides high interest on crypto holdings and long-term investing by providing SIP options to its customers.
This year’s macroeconomic downturn in the crypto market, the crypto winter, Luna’s downfall, Celsius collapse, bankruptcy of Three Arrows Capital, and FTX’ collapse led the investors to withdraw their funds from various exchanges. New tax rules in the crypto market showed a huge impact on Vauld.
Nexo to exit the US
Nexo announced that it would ‘phase out its products and services’ from the United States. Earlier, the exchange revealed that it was facing issues with US regulators regarding its services in the US. Nexo’s payment specialists have assured customers that it would continue to process withdrawals to avoid uninterrupted access to assets.
Nexo stated that “as part of our cooperative approach with regulators, during the course of 2021 and 2022, we have off-boarded clients from the states of New York and Vermont and have suspended new registrations for all US clients for our Earn Interest Product to meet regulator’s expectations.”
Currently, Nexo is managing more than three million users across 200 jurisdictions. Nexo is an online crypto lender platform that offers cold wallets for storing crypto assets. Nexo also provides consumer loans and debit cards for online and offline purchases.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/27/vauld-says-nexo-acquisition-called-off/