Romania-based crypto start-up ZoidPay wants to buy Lithuanian bank
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Loading... - Odden Olger
- 02 Jun 2023
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ZoidPay, a company based in Romania, recently received a substantial "investment commitment" of $75 million from GEM Digital Ltd., a venture capital fund based in the Bahamas. This investment marked GEM's most recent activity after an impressive six-month run. Now, ZoidPay has expressed its intention to acquire a Lithuanian bank and transition into becoming a more conventional company. This means they aim to generate revenue through means other than the sale of tokens and coins.
In an interview with Business Magazin, Eduard Oneci, co-founder of ZoidPay, revealed that GEM is a subsidiary of a larger US-based group. To bypass stricter US regulations, this group operates in the Bahamas. However, the identity of the parent company in the US remains undisclosed. Oneci explained, "They approached us as a large fund with headquarters in New York and a presence in the Bahamas. The Bahamas arm allows them to invest in crypto and blockchain projects more easily due to regulatory reasons."
It is worth noting that GEM Digital Ltd., which has a website infected with malware, operated for precisely six months and concluded its activities with ZoidPay's commitment. Oneci stated that the deal was the result of 14 months of negotiations.
Interestingly, GEM predominantly engaged in solo deals rather than partnering with other venture capital funds, as is more common. Following their commitment of nearly $750 million between May 11 and November 3 of the previous year, GEM has not announced any further deals to date.
Sources familiar with GEM's operations reveal that these "commitments" are arrangements aimed at boosting the visibility of a particular token and attracting investment from optimistic investors. The funds raised from these investors are then divided between the "investor" (to fulfill the commitment) and the target company (in this case, ZoidPay). Given that ZoidPay's token failed to reach its peak following the GEM deal in November, it is unlikely that the full $75 million will be secured from investors.
