BlockFi, Celsius, Nexo, and more: tough times can lead to difficult measures, and this year\u2019s bear market is showing no exception to some of these players. Look no further than the current state of affairs for centralized finance (CeFi) platforms, who have been facing substantial headwinds with no end in sight.<\/p>\n
Now, after days of rumors and reported exploratory deals, reports have emerged that powerhouse crypto exchange FTX is putting together the final ties around an acquisition deal of BlockFi at just a $25M valuation. The news comes after reports emerged that FTX passed on an acquisition deal for Celsius after seeing the CeFi firm\u2019s balance sheet.<\/p>\n
BlockFi On The Block<\/p>\n
Should the purchase come to fruition at the reported valuation, it\u2019ll be a major hit for BlockFi equity holders, following a nearly $5B valuation last year in the midst of bull market movement. However, that $25M number could move drastically between today\u2019s reports and closing time \u2013 and a successful acquisition will of course take months to close. BlockFi CEO Zac Prince described the number as \u201cmarket rumors\u201d and outright denied the number, stating in a tweet that \u201cwe aren\u2019t being sold for $25M.\u201d<\/p>\n
FTX is on the shortlist of exchanges that have sought out opportunity in the midst of crypto market downturn, exploring buyouts or equity share purchases for both Celsius and BlockFi in recent weeks, according to a variety of reports. However, based on the hard facts available to the public, the viability and likelihood of a buyout for BlockFi is still difficult to measure.<\/p>\n\n
Celsius (CEL) has faced an uphill battle as the platform has still paused withdrawals for customers. | Source: CEL-USD on TradingView.com<\/p>\n
Related Reading | Ethereum Loses Steam As Exchange Supply Spikes<\/p>\n
State Of CeFi: Pulse Check<\/p>\n
How did we get here? Bear market downturn over the past month or two has caused major pain for CeFi platforms, in a flurry of madness that started with Celsius freezing withdrawals earlier this month amid worries of a bank run and lack of immediate liquidity within the platform\u2019s holdings. BlockFi has undoubtedly faced the heat, too, as FTX provided the firm with a $250M emergency line of credit just last week. While reports across the market suggest that BlockFi has several options on the table, it seems that few will lead down a path that spares equity shareholders of value at present time. Nexo has largely stayed quiet during the chaos, but there\u2019s various internet sleuths who have targeted Nexo with content campaigns around the company\u2019s practices as well.<\/p>\n
Regardless of how you feel about CeFi, the decline of infrastructure in this bear market shouldn\u2019t be celebrated \u2013 we\u2019ll see how it all shakes out when the tides recover.<\/p>\n
Related Reading | USDC Exchange Reserves Rise As Investors Escape From Bitcoin<\/p>\n
Featured image from Pixabay, Charts from TradingView.com
\nThe writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
BlockFi, Celsius, Nexo, and more: tough times can lead to difficult measures, and this year\u2019s bear market is showing no exception to some of these players. Look no further than the current state of affairs for centralized finance (CeFi) platforms, who have been facing substantial headwinds with no end in sight.<\/p>\n
Now, after days of rumors and reported exploratory deals, reports have emerged that powerhouse crypto exchange FTX is putting together the final ties around an acquisition deal of BlockFi at just a $25M valuation. The news comes after reports emerged that FTX passed on an acquisition deal for Celsius after seeing the CeFi firm\u2019s balance sheet.<\/p>\n
BlockFi On The Block<\/p>\n
Should the purchase come to fruition at the reported valuation, it\u2019ll be a major hit for BlockFi equity holders, following a nearly $5B valuation last year in the midst of bull market movement. However, that $25M number could move drastically between today\u2019s reports and closing time \u2013 and a successful acquisition will of course take months to close. BlockFi CEO Zac Prince described the number as \u201cmarket rumors\u201d and outright denied the number, stating in a tweet that \u201cwe aren\u2019t being sold for $25M.\u201d<\/p>\n
FTX is on the shortlist of exchanges that have sought out opportunity in the midst of crypto market downturn, exploring buyouts or equity share purchases for both Celsius and BlockFi in recent weeks, according to a variety of reports. However, based on the hard facts available to the public, the viability and likelihood of a buyout for BlockFi is still difficult to measure.<\/p>\n
Celsius (CEL) has faced an uphill battle as the platform has still paused withdrawals for customers. | Source: CEL-USD on TradingView.com<\/p>\n
Related Reading | Ethereum Loses Steam As Exchange Supply Spikes<\/p>\n
State Of CeFi: Pulse Check<\/p>\n
How did we get here? Bear market downturn over the past month or two has caused major pain for CeFi platforms, in a flurry of madness that started with Celsius freezing withdrawals earlier this month amid worries of a bank run and lack of immediate liquidity within the platform\u2019s holdings. BlockFi has undoubtedly faced the heat, too, as FTX provided the firm with a $250M emergency line of credit just last week. While reports across the market suggest that BlockFi has several options on the table, it seems that few will lead down a path that spares equity shareholders of value at present time. Nexo has largely stayed quiet during the chaos, but there\u2019s various internet sleuths who have targeted Nexo with content campaigns around the company\u2019s practices as well.<\/p>\n
Regardless of how you feel about CeFi, the decline of infrastructure in this bear market shouldn\u2019t be celebrated \u2013 we\u2019ll see how it all shakes out when the tides recover.<\/p>\n
Related Reading | USDC Exchange Reserves Rise As Investors Escape From Bitcoin<\/p>\n
Featured image from Pixabay, Charts from TradingView.com
\nThe writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.<\/p>\n
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