Good News For Zipmex Users, Exchange Has Been Acquired By Thai Venture Capital Firm
Today is a promising day for the users of the Zipmex exchange as the platform is finally getting acquired by V Ventures.
For weeks, both parties had been going back and forth with respect to finalizing the negotiations of Zipmex’s acquisition. Finally, both sides have agreed upon the bid and have decided to proceed further.
V Ventures is a major venture capital fund while Zipmex is a cryptocurrency exchange based in Thailand.
V Ventures to Purchase 90% Stake in Zipmex
V Ventures has announced that following the deal, they will have acquired a 90% stake in the Thai cryptocurrency exchange.
V Ventures is the subsidiary of the entity in Thailand. The name of the entity is Thoresen Thai Agencies (TTA). It is a public company that is eager to explore the cryptocurrency industry as much as possible.
The latest about the acquisition of Zipmex’s 90% stake was made by V Ventures on December 2.
Deal to Finalize for $100 Million
The officials at V Ventures have confirmed that they will be acquiring a 90% stake in the Zipmex exchange for about $100 million.
They have decided to finalize the deal and pay for it in cash and cryptocurrencies. The same information had been revealed by the internal sources aware of the matter.
The venture firm has already submitted a report at the Singapore court on Friday. In the report, V Ventures announced that it will be paying $100 million for the acquisition of Zipmex.
30% of the total amount will be paid in cash while the rest of the amount will be paid in digital assets.
Zipmex to Unlock Users’ Funds
Like the rest of the major cryptocurrency exchanges going bankrupt, Zipmex also faced a major demise. The exchange had to halt the withdrawal access for the users.
After that, the exchange went to court and requested to be provided protection from the creditors until it could find a way to solve the financial crisis.
Turns out, the exchange is now getting acquired by a venture capital firm. The proceeds from the deal will be used by the exchange to hand over the funds back to the rightful users.
The exchange will re-enable the accounts belonging to the users and allow them to withdraw their locked funds. The exchange plans on completing the process by the end of April 2023.
Once the payment has been made, V Ventures will have acquired a majority stake in the exchange. The exchange abruptly halted the withdrawals option for the users in July 2022.
The exchange had revealed that it was facing multiple issues where the financial crisis matter was on top of the list. Therefore, the exchange had to proceed with halting withdrawals to deal with the matter.
V Ventures to Gain Control in Multiple Countries
Thoresen Thai Agencies has been aiming to gain ground in the cryptocurrency industry. The company is after a similar kind of exposure in the cryptocurrency industry like SBI Holdings from Japan.
After the acquisition of Zipmex, Thoresen will gain access to the cryptocurrency market based in Australia, Indonesia, Singapore, and Thailand.
The exchange had a well-built reputation in the mentioned countries so Thoresen has gotten its hands on a wonderful deal.
The TTA is going to increase its influence and control in the cryptocurrency market. It will take control of the crypto markets based in particular countries and then expand the business.
Why is Major Institutions Entering Crypto Industry?
As the cryptocurrency industry has remained mainly bearish, it has become an alarming situation for investors.
The investors had been waiting for a long time for the crypto industry to recover but to no avail. Then come the institutional investors who have been investing a lot in the crypto industry.
The current market situation is very promising for institutional investors as they get to invest less and acquire so much in the industry.
When the cryptocurrency industry picks up the pace and enters the bullish market, it will benefit from the industry the most.