Nexo (NEXO), a cryptocurrency-backed loan platform, has sent a Letter of Intent (LOI) to purchase the remaining, qualifying assets of competitor SALT (SALT) after rumors surfaced of an exit scam surfaced due to the unexpected departure of the company’s CEO.
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
While the rumors of an exit scam are currently unsubstantiated, members of the cryptocurrency community are beginning to attack the project, as highlighted by post by Reddit user NachoKong.
According to the letter of intent provided by Nexo in a tweet, the company is interested in acquiring certain remaining qualifying assets, mainly “loan receivables secured by corresponding collateral assets, brand assets and customer database of [SALT].”
Notably, Nexo has offered instant liquidity options to all SALT clients up to $2,000,000 per client following Nexo’s KYC/AML procedures. Additionally, Nexo will consider honoring SALT users’ memberships on its lending platform.
Nexo does not impose a “proof‑of‑access” requirement for its lending products, thus it will consider to honor SALT users’ already paid memberships with regard to access to funding on Nexo’s platform, contingent on a detailed legal review and assessment of their terms and conditions.
Moving forward, Nexo notes that it will also consider adding SALT tokens as a supported token for collateral on its platform, better enabling the potential transition of users and assets.
SALT has not yet publicly commented on either the exit scam rumors or the recent Nexo acquisition offer.
Related: SALT Reddit Thread
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.