Zipmex Exchange Strives To Raise $50 Million To Stay Afloat

© Reuters. Zipmex Exchange Strives To Raise $50 Million To Stay Afloat

• Zipmex announced that it is trying to raise $50 million to repair its balance sheet.
• The exchange stated that their conversations with various interested parties progressed significantly.
• Just last week, the crypto exchange halted withdrawals citing volatile market conditions.

Zipmex, one of the most prominent Southeast Asian crypto exchanges, has announced that it is trying to raise $50 million to repair its balance sheet.

Through a Twitter (NYSE:TWTR) post on Sunday, Zipmex representatives stated that their conversations with various interested parties 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,” said the exchange.

Just last week, the crypto exchange halted withdrawals, citing a combination of reasons, including volatile market conditions and also added financial difficulties with its key partners that provoked the exchange to take the decision. The exchange informed its clients that all withdrawals would be paused until further notice.

The unraveling of Zipmex is the inevitable consequence of the market crash that the crypto world experienced last month. Celsius was the first to go, followed closely by Babel Finance, Three Arrows Capital, FTX, Deribit, and BitMEX. The crumbling of these relatively stable institutions sent shock waves across the industry. According to analysts, it was the interconnectedness of these businesses that caused them to fall like a house of cards.

On the bright side, the market seems to be recovering this week as Bitcoin and Ethereum displayed some gains after weeks of trading in the red. Bitcoin is trading at $21,137.28, a 5.9% increase in the last two weeks, and Ethereum is currently at $1,413.16, a 28.8% increase in 14 days. Though these may not be major improvements, crypto investors are happy the market isn’t rapidly crashing.

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