After Vauld abruptly ceased customer withdrawals on Monday, Nexo seems to have begun a process to potentially buy the latter. The Block reports that Nexo has inked a “indicative term sheet” with Vauld and plans to purchase the Singapore-based firm. Nexo has 60 days under the terms of the term sheet to undertake its due diligence before submitting a proposal.
Vauld’s fall and the link to the global crypto market
Vauld cited financial constraints as the reason for suspending all withdrawals, trading, and deposits. However, it has a strong following in India, Singapore, and the rest of Southeast Asia, which could be a great opportunity for Nexo. It blamed the market’s volatility for its financial difficulties, which had a negative influence on its business partners as well. According to the announcement, the current state of the market prompted many customers to close their accounts.
Although neither party has yet to publish the full terms of the anticipated agreement, this might spell a huge relief for users. However, uncertainty surrounding the potential acquisition remains as long as the two companies remain silent. Nonetheless, it brings reprieve to the market. This will likely stabilize the fortunes of the company until they confirm or deny the news. Going forward, bailouts and takeovers will be critical to ensuring the crypto market remains afloat.
The crypto market is facing a tumultuous time, and many analysts are predicting that the market is yet to hit the bottom. The current bear run has seen the market wipe out $2 trillion over the past seven months, with no reprieve in sight. NFTs are the latest segment to report a substantial decline. The NFT daily sales in June were the lowest over the past twelve months. Nonetheless, substantial amounts of investments are still flowing into various crypto projects. Also, GameFi has held on steady despite the downturn.