Investing

Zipmex Says Discussions With Potential Buyers ‘Have Progressed Considerably’

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Simply days after pausing buyer withdrawals, Singapore-based cryptocurrency trade Zipmex mentioned it is obtained a memorandum of understanding from a possible investor, which could possibly be seeking to purchase out the agency.

“Our conversations with varied events have progressed considerably,” the corporate mentioned in a tweetincluding that “a type of events has supplied phrases in an SOFT,” a non-binding settlement that is usually a place to begin for negotiations.

Zipmex didn’t describe the precise nature of the deal or title the possible purchaser, solely that it sought “to start Due Diligence,” which is widespread in mergers and acquisitions, and permits potential consumers to take a deeper dive on a goal firm, notably its monetary statements.

Zipmex joins the likes of Celsius, BabelFinanceand CoinFLEX, all asserting pauses on withdrawals for purchasers amid a hunch in digital asset costs. Zipmex said in a statement the day after it suspended withdrawals that it has $48 million in publicity to Babel and $5 million in publicity to Celsius.

Because the declining value of cryptocurrencies has thrust some firms into monetary turmoil, others have stepped in to strike opportunistic offers, together with FTX US, lately signing a deal with cryptocurrency lending platform BlockFi that features an choice to purchase the corporate for as much as $240 million.

A deal for Zipmex could possibly be on the horizon. In accordance with reports, the corporate had discussions with Coinbase relating to a possible acquisition in March, however Coinbase as an alternative made a strategic funding. That quantity wasn’t disclosed.

Zipmex final week cited “circumstances past [its] management” on Twitter in asserting that it was pausing customer withdrawalsblaming “risky market circumstances.”

The platform’s native token, ZMT, has declined by almost 40% to $0.343 right now from $0.5637 on July 20, in keeping with knowledge from CoinMarketCap. The trade has seen almost $4 million in volume trading over the previous 24 hours, with virtually 60% of all trades coming from ZMT.

Since asserting the pause, Zipmex has re-enabled buyer withdrawals for its Trade Wallet—the place customers can retailer crypto and fiat for buying and selling—however Zipmex’s Z-walletthe place customers can deposit funds to earn bonuses and rewards, stays offline.

Zipmex operates in 4 completely different nations—Singapore, Australia, Indonesia, and Thailand—and presents each spot buying and selling for cryptocurrencies and curiosity on deposits.

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