The cryptocurrency company Nexo has said it will be buying Vauld, according to a Reuters report. The news comes a day after Vauld put out a statement on its website saying that it was facing financial challenges and needed to pause customer withdrawals. In the short term, Nexo will provide immediate assistance so Vauld can resume customer withdrawals.
Nexo is based in the UK and Vauld operates in Singapore. Once the acquisition completes, Nexo plans to reorganise Vauld’s operations to put it on a better financial footing and then deepen its operations in Asia giving Nexo more customers in that part of the world. It was not disclosed how much Nexo was paying to buy Vauld.
Given that this is the first major economic crisis that the crypto space is experiencing, people have been concerned about how it would cope. So far, it looks quite similar to the rest of the economy where some businesses get caught out and end up getting acquired by more financially-responsible players.
So far this year, we have seen several stablecoins lose their value and some businesses like Vauld, Celsius, Voyager, and Three Arrows Capital being forced to pause withdrawals or liquidate. The price of cryptocurrencies have also fallen a lot, though, this is nothing new as we’ve seen bitcoin go up and down in value drastically since its creation.