As a result of Celsius Network’s decision to freeze withdrawals, Nexo has made a formal offer to purchase qualified assets from the company. Although Nexo published a formal Letter of Intent on its Twitter account today, June 13, Celsius has yet to respond. In order to provide prompt liquidity to Celsius’ customers, Nexo is extending an offer to acquire all or part of the outstanding collateralized loan receivables held by Celsius.
As a precautionary measure to save Celsius clients from the consequences of bankruptcy, Nexo says it recently reached out to the company. However, Nexo says that Celsius did not respond. In addition, Nexo claims that it has sufficient liquidity to cover all of its financial obligations and the needs of all of its customers. Although Nexo’s strict risk management and collateral criteria apply, the offer aims at providing Celsius’ clients with rapid liquidity and protection.
What’s happened to the Celsius Network?
Nexo is a crypto banking platform that offers high interest rates on a range of cryptocurrencies and stablecoins, as well as crypto-backed loans. Users of Nexo are eligible to earn interest on EUR, GBP, and USD. On the other hand A this, the Celsius Network operates as a crypto-banking service that offers weekly interest payments on several different types of cryptocurrencies and stablecoins. In addition to providing crypto-backed loans, they also provide the opportunity to pay and receive payments in crypto.
The offer by Nexo to Celsius comes on the heels of a notice made by Celsius early on Monday, stating that it will suspend all withdrawals, Swap, and account transfers between users. CEL, which is the native token of the Celsius Network, dropped by almost 70% within an hour of the news, causing panic among investors. Insolvency has been hovering over Celsius since last week, and this could be confirmation of that.
Nexo has stated in the letter that the offer will remain on the table until 4:30 a.m. UTC on June 20th, 2022, unless Celsius rejects it or Nexo withdraws it before then. Nonetheless, Celsius’ troubles couldn’t have come at a worse time for DeFi and the global crypto market.