Hodlnaut Administrators Reject OPNX's Acquisition Offer Amid Flex Token's 90% Drop
Summary:
Temporary court-appointed managers of the cryptocurrency lending platform Hodlnaut refused a recent purchase offer from digital currency exchange, OPNX, amid a dramatic 90% fall in settlement token’s value. The $30 million offer in Flex (FLEX) tokens was viewed as illiquid and speculative. Over half of Hodlnaut’s creditors, comprising 60% of the total debt, also rejected the deal. Key concerns included the absence of a direct injection of cash or assets and lack of a clear repayment timetable for creditors.
Temporary court-appointed managers of the defunct digital currency lending platform, Hodlnaut, have reportedly turned down a recent purchase agreement as the settlement token's value suffered a steep 90% decline. The oversight team at Hodlnaut have resisted acquisition terms proposed by OPNX, a digital currency exchange platform launched by Kyle Davies and Su Zhu. These individuals also co-founded the unsuccessful investment fund, Three Arrows Capital (3AC). In a new court document, the temporary managers contested that the $30 million offer of Flex (FLEX) tokens lack liquidity and possess a variable worth as noted by Bloomberg on Sept. 19. Over half of Hodlnaut Group’s creditors, responsible for 60% of the total outstanding debt, have also resisted the OPNX agreement.
The managerial team pointed out the severe depreciation of FLEX, roughly 90%, since OPNX presented its proposal to acquire 75% of Hodlnaut in early August 2023. At the proposal’s time, FLEX had a trading value of approximately $7. Yet, current data from CoinGecko reveals that Flex Coin currently trades at $0.58.
Aside from their apprehensions about FLEX, the temporary judicial managers of Hodlnaut articulated concerns about the absence of "cash injection or assets of similar liquidity." This insinuation suggests primary digital valuables like Bitcoin (BTC) or Ether (ETH). The lack of a repayment schedule for creditors' debts and no detailed plan for payments beyond 30% of obligations further displeased the managers.
FLEX is the primary token of the Coinflex exchange. It bears a close relationship to the OPNX platform because its founders, Mark Lamb and Sudhu Arumugam, also assisted in OPNX's inception.
In June 2022, Coinflex paused all withdrawals, with the CEO attributing the suspension to adverse market conditions and "persistent unpredictability concerning a counterparty." The exchange has initiated a restructuring procedure in a Seychelles court, aiming to recover a loss of $84 million from a significant individual client. Coinflex anticipates officially halting business operations on October 31, 2023, and advises its customers to pull out all funds from the platform prior to the closing date.
This article, available as an NFT collection piece, acknowledges this essential moment in history and advocates for autonomous journalism within the digital currency terrain.
Published At
9/19/2023 1:16:09 PM
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