A cryptocurrency exchange that has gone bankrupt in recent months may be close to a bailout, according to information released by Bloomberg. If confirmed, this would be the first instance of a platform rising from the ashes.
Since the end of 2021, cryptocurrency exchanges around the world have been under pressure for their business. The main reason is the fall in the value of bitcoin, resulting in a decrease in the number of investors.
However, the most drastic deterioration started since May 2022, when the Terra cryptocurrency (LUNA) died. As many companies in the industry invested in the project, its end collapsed.
In a deadly spiral movement, other companies with indirect involvement were also shaken up.
Cryptocurrency exchange that went bankrupt and stopped withdrawals can be bailed out
Cryptocurrency exchange Zipmex was one that went bankrupt in July 2022 when it couldn’t take the strain on its business.
By announcing maintenance on the platform, it stopped looting and customers became desperate. However, the brokerage claimed to have been in contact with potential investors in recent months and a positive outcome could be forthcoming.
According to Bloomberg, an Asian investment fund could invest $100 million to save the company. The amount can be partially paid in cash ($30 million) and the rest in cryptocurrencies, demonstrating the industry’s first redemption.
the background V companiesif you complete the purchase, you will have 90% of the brokerage rights.
If negotiations are completed through the acquisition, Zipmex could be saved, demonstrating that some managed to return to the market after successive hiatuses. However, it is not clear whether customers’ balances can finally be cleared any time soon.
Broker says it is in the final phase of the acquisition
Publicly, the companies do not confirm the acquisition of the company by V Ventures. Well via Twitter, Zipmex declared which is in the final phase of the acquisition, but no final agreement has been signed yet.
“We are currently in the final stages of talks where terms are being negotiated and continue to change. However, no conclusion has been reached or an agreement signed as reported. As usual with investment talks, Zipmex cannot provide more details.”
Thus, by all indications, Zipmex is the first bankrupt cryptocurrency brokerage to seek rescue in 2022. The operation was concentrated in Australia, Thailand, Indonesia and Singapore, that is, the end of the company made customers from 4 countries and 2 continents were trapped.
It is worth remembering that the Binance brokerage has been trying to bring investors together to bail out companies. The platform recently reported that 150 bankrupt companies have already asked for help for their business.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
