Nexo has offered to buy some of the assets of its competitor, Celsius Network, to ensure it meets its obligations to customers.
In the middle of the Celsius liquidity crisis, Nexo, the main regulated institution for digital assets, could acquire part or all of the outstanding credits backed by their corresponding collateralized cryptocurrency collateral, subject to Nexo's risk and collateral requirements.
Nexo has announced the purchase offer through Twitter, where it has explained that a purchase offer has been extended with the aim of protect users and Celsius Network investors in the face of what appears to be a liquidity crisis.
Nexo's tweet is accompanied by an official letter in which they offer to buy "a substantial part or all of the remaining qualified assets..." This means that they would buy not only the debt, but also the collateral assets, such as brand assets and your customer database.
In the letter, Nexo explains that they have been observing the latest developments of Celsius Network and are aware of the risks they pose to their clients and to the blockchain community, in general. For its part, Nexo's business model has allowed it to be sustainable and maintain financial stability even in a complicated market situation, so they are in a suitable position to mitigate Celsius Network's liquidity problems.
On the other hand, it is notable that in the letter is not mentioned no price for the offer. In addition, Nexo has set an expiration date on the offer that will be on the table until the June 20 at 4:30 am (UTC).
Nexo's offer could go a long way toward restoring Celsius Network's liquidity, reassuring users and customers.
What is Nexus?
Nexus is a decentralized lending platform based on blockchain that offers users immediate loans backed by cryptocurrencies. Users can deposit Bitcoin, Ether, XRP or Litecoin and receive a loan in stablecoins or fiat currencies.
Nexo has a stakeable token, NEXO, that offers benefits such as discounts on loan interest or the ability to receive interest payments on deposited funds. NEXO holders also receive dividends from Nexo profits.
While Celsius reports weekly inputs and outputs to the platform, Nexo offers a real-time audit of all assets in custody. In the most recent audit, it indicates that they have $6.200 billion in assets from their clients.
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