Rainy days in the crypto world call for a ray of sunshine, and crypto holdings platform Nexo is looking to provide just that by “trying to do the right thing”, offering Celsius a buy out deal. Nevertheless, it seems that Celsius is not keen on the idea as a spokesperson for Nexo who, after their first attempt to reach out to Celsius, claimed that “the help was refused”.
A 7-day Lasting Proposal
On Monday, June 13th, the crypto community played witness to a huge scandal as the Celsius crypto platform decided to unexpectedly halt all operations, including swaps and withdrawals. The subsequent backlash from the crypto community ignited panic among investors. Nexo, another crypto platform, then decided to step in, submitting a formal letter with the offer to buy out Celsius’ loans in order to soften the blow.
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
— Nexo (@Nexo) June 13, 2022
In the formal letter, New-Jersey based Nexo offered to purchase all remaining qualifying assets of Celsius Network LLC and Celsius Lending LLC, giving the management of Celsius LLC a 7 day window in which to respond to the buy-out offer.
Is Celsius the Next Luna?
Cory Klippsten, the CEO of Swan Exchange, has also proffered a helping hand to Celsius, though not without levelling a few shots of criticism towards the CEO and Founder of Celsius Alex Mashinsky, and now, as the story seems to be going, the captain of today’s crypto Titanic.
NO MORE 1 BTC MINIMUM for the @swanbitcoin life raft. Free membership in Swan Private ($3000 value) for the first 1000 Celsius members who DM me.
— Cory Klippsten (@coryklippsten) June 13, 2022
The consequences of the decision by Celsius decision was felt beyond just company itself. Amidst the struggle, major competitors of the network, such as BlockFi and Ledn, released soothing statements to their investors on Twitter, which included a call for transparency, guarantees that investor funds were secure, pleas for “business operating as usual”, and so on.
Many crypto enthusiasts, including analyst Will Clemente, have highlighted the similarities between the situation with Celsius, and what happened two months ago to Terra (LUNA) and its algorithmic stablecoin Terra (UST).
I guess Luna and Celsius will be our two sacrifices to the crypto gods for this bear market?
— Will Clemente (@WClementeIII) June 13, 2022
As the crypto industry opens this Monday staring down an extremely bearish market, the conditions seem reminiscent of those seen in May, when Terra (LUNA) crashed beyond repair. However, we are yet to see the extent of the turbulence, and how much of an impact it will have on the top cryptocurrency.