Zipmex Potentially Found An Investor To Buy Out The Company

Singapore-based crypto exchange Zipmex potentially found an investor that might buy out the company after withdrawing customer withdrawals for a few days so let’s read more about it in today’s latest cryptocurrency news.

Days after the exchange decided to pause withdrawals, the crypto exchange Zipmex potentially found someone that might buy out the company:

“Our conversations with various interested parties have progressed significantly.”

📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex

— ZIPMEX (@zipmex) July 24, 2022

The company added that one of the parties offered terms in a MOU agreement which is often a starting point for negotiations. Zipmex didn’t quite explain the nature of the deal or the name of the buyer but it added that it sought to commence Due Dilliengce which is common in mergers and acquisitions, enabling buyers to take a deeper dive into the target company and its financial statements. Zipmex joins the likes of Babel Finance, Celsius, and CoinFLEX which are exchanges that all announced pauses on withdrawals for customers amid the slump in digital asset prices.

Zipmex said that after it suspended withdrawals, it had $48 million in exposure to Babel and $5 million in exposure to Celsius. As the declinign price of crypto pushed some companies into financial trouble, others stepped in and strike opportunistic deals like FTX US which signed a deal with crypto lending platform BLockFi that included an option to buy the company for $240 million.

A deal from Zipmex can be on the horizon and as per the reports, the company discussed with Coinbase about a potential acquisition but the latter made a strategic investment instead. Zipmex cited circumstances beyond its control and announced that it was pausing customer withdrawals and blamed it on the volatile market conditions. The platform’s token ZMT declined by 40% to $0.343 today from the previous $0.5637 a few days ago. The exchange aw $4 million in trading volume in the past day and 60% of the trades came from ZMT.

Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.

— ZIPMEX (@zipmex) July 20, 2022

Since announcing the pause, Zipmec re-enabled customer withdrawals for its Trade Wallet where the users can store crypto and fiat for trading but the Z wallet where users can deposit funds for rewards is still offline. Zipmex operates in four different countries like Thailand, Indonesia, Singapore, and Australia, and offers both spot trading for crypto and interest in the deposits.