Nexo Offers to Acquire SALT Lending’s Qualifying Assets
Known for being the first-ever instant, cryptocurrency-backed loans provider, Nexo took to Twitter to express its offering to acquire what remains of SALT Lending, a membership-based lending and borrowing network and a worthwhile competitor.
The tweet made on July 27, 2018, made it seem as if the Nexo was doing a favor or “lends a helping hand” to its competition, while sharing its willingness to “provide instant liquidity to its community, up to $2,000,000 per client without “proof-of-access” requirements.” To add to this public announcement, the firm also shared what appears to be its letter of intent to SALT Lending.
Nexo lends a helping hand to @SaltLending by offering to acquire remaining assets of the company and provide instant liquidity to its community, up to $2,000,000 per client without "proof-of-access" requirements. $NEXO #InstantLoanshttps://t.co/2bghrhuMYShttps://t.co/F19i07aw2L
— Nexo (@NexoFinance) July 27, 2018
As per the letter of intent, Nexo not only expressed its interest in the acquisition, but also made a list of promises that will be executed during the acquisition. Given that the two parties involved agree on the switching of ownership, Nexo will acquire SALT Lending’s “qualifying assets”, which mainly come from “outstanding loan receivables secured by their corresponding pledged cryptocurrency collateral.”
Nexo also wrote in its letter that it will accept SALT tokens as “collateral for instant loans or for loan repayments on the Nexo platform.” As for pre-existing memberships, Nexo has decided it would only be right to “honor SALT users” through the Nexo platform.
SALT has achieved quite a lot in 2017, with earning the title of most profitable during an initial coin offering (ICO). Unfortunately, like many other altcoins, SALT followed the downward trends of the crypto market – barely regaining its momentum during its all-time high.
As per a report published by Crypto Briefing, the SALT team’s lack of communication with investors, restrictions on community contribution, and the poorly decided, SALT repayment plan, which allegedly allowed users to repay loans at “retail prices”, are some of the main reasons for the continuous drop in token price.
Nexo could have possibly made the decision to acquire what’s left (and valuable) of SALT Lending, after news that the CEO of the latter firm, Shawn Owen, stepped down from his position and turned his responsibilities to a temporary team sparked some time last week.