Troubled Thai Crypto Exchange Zipmex Announces Good Progress with Potential Investors
- Zipmex was granted three months by a Singapore-based court to sort out its liquidity issues before anyone can file a lawsuit.
- Reportedly, the company has received financial offers from both local and international investors.
- Coinbase has invested in the Thai cryptocurrency exchange through its venture arm.
Troubled Thailand cryptocurrency exchange, Zipmex, has announced that it is in the advanced stages of negotiations with potential investors for a bailout. According to an update posted on its official website, Zipmex has requested a meeting with Thailand’s Securities Exchange Commission to introduce the potential investors.
The company previously suspended withdrawals of digital assets citing the volatility and uncertainty in the cryptocurrency industry. However, Zipmex has been working towards restructuring its business and fully reopening its operations.
Remember, the company was granted three months by a Singapore-based court to sort out its liquidity issues before anyone can file a lawsuit.
Dr. Akalarp Yimwilai, CEO and Co-Founder of Zipmex Thailand said “Zipmex has consistently been trying to restore investor confidence. By resuming the Z Wallet service and doing everything possible to resolve the aforementioned problems, we intend to continue to move forward to resume full services to serve our customers effectively and fairly.”
Zipmex Recovery Process
Having been granted a grace period to sort out its liquidity issues, the company has hired KordaMentha Pte. Ltd., a global firm with expertise in restructuring and financial consulting. Reportedly, the company has received financial offers from both local and international investors.
Remember, Coinbase Global Inc. (NASDAQ: COIN) has invested in the Thai cryptocurrency exchange through its venture arm.
As a show of goodwill, the company has enabled withdrawals of some specific crypto assets including MANA and AVAX. Meanwhile, the company has announced it is in advanced negotiations with two investors who will help rebalance its balance sheet.
Remember, the company absorbed Celsius’ $5 million loan after the latter was declared bankrupt. Worth noting that Zipmehad loaned trounced crypto firm Babel Finance $48 million.
With the grace period expected to end on December 2, according to the moratorium, the company is working diligently to get the best deal from potential investors.
Remember, Zipmex is holding customers’ digital assets that were used as collateral assets and does not want to liquidate them at current prices. Furthermore, potential investors could bail the company out and thus give the held assets a chance to grow exponentially over the years.
Side Notes
Thailand has recorded an influx of institutional investors seeking to register with the regulators as cryptocurrency firms. For instance, Thailand’s second richest man, Sarath Ratanavadi who happens to be the Chief Executive Officer (CEO) of Gulf Energy Development Pcl (Bangkok: GULF), said his company will boost investments in the cryptocurrency and blockchain industry.
However, the country’s central bank has continuously cautioned against the use of cryptocurrency as a form of payment due to its high volatility.
Meanwhile, the global cryptocurrency market capitalization today is $1.02 Trillion, 6.7 percent down in the last 24 hours. The total cryptocurrency trading volume in the last day is at $77.9 Billion. Bitcoin dominance is at 38 percent while Ethereum dominance stands at 17.8 percent.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
