Nexo To Re-open The Locked Vauld
It looks like consolidation season is in full swing at the moment with FTX gobbling up all distressed lenders they can find, but that doesn't mean other platforms aren't looking to eat up the carcasses of their competitors. We now have news that the struggling Singapore shitcoin casino funded by Peter Thiel and Coinbase Ventures has received a term sheet from Nexo to be taken over.
Vauld recently halted withdrawals much to the dismay of their customers and since then they've been scrambling to find someone to bail them out.
They eventually did find someone willing to look at their books and think this is a worthwhile deal, and Nexo has made Vauld an offer to purchase the distressed shitcoin lender.
Nexo getting in on the buy the sinking boats game
Nexo has signed a term sheet with Vauld giving it 60 days of exclusive talks to explore an all-equity acquisition of the company and that could mean a full wipe out of the previous equity holders, but hopefully no haircut for depositors, but this remains to be seen. If successful, Nexo said it plans to restructure the company and use its customer base to pursue an expansion in Southeast Asia and India.
Again like I mentioned with the buying of voyager by FTX, it makes total sense, you're buying an established customer base, and if you save them, they are going to come back and trade with you and rek themselves individually with your casino.
There are a few more platforms on the brink like Babel Finance so I don't think these buyouts are going to stop anytime soon. Instead of spending on marketing to acquire users in a singular fashion, buying them up in bulk on the cheap seems like the better way to spend your marketing budget if you're one of these platforms.
Business as usual
As soon as this wave of consolidations goes through, you'll see confidence come back into the casinos. Shitcoiners have the memory of a goldfish and if they can avoid pain now, they're happy to go back to the casino and roll the dice again.
These buyouts are effectively staking customers to go back and roll the dice, but as they blow up their accounts individually it's not a problem. It's all free money for the platforms and that's what you want a long line of suckers thinking they're smarter than your team of traders.
I've spoken to professional traders, I've worked with them and they love a good yield hog or greedy piggy coming into the market, and they slaughter them daily. Click traders are their bread and butter, why do they call them that? Because you're trading actually placing orders, they don't they've worked out the best ways to wash people out of positions.
I'm sorry to say but you never have an edge on these guys, you can run from CEFI to DEFI but they are there too and they're going to eat your lunch.
Sources:
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