Recent Developments in Hodlnaut and Coinflex
The overseeing managers of Hodlnaut, a cryptocurrency lending platform that recently faced a collapse, have reportedly rebuffed the latest acquisition offer due to a substantial 90% plummet in the value of the settlement token.
The administrators of Hodlnaut are firmly opposed to the proposed acquisition terms put forth by OPNX, a cryptocurrency exchange co-founded by Kyle Davies and Su Zhu, notable individuals associated with the failed hedge fund Three Arrows Capital (3AC).
In a recent legal filing, the interim managers argued that the offer of $30 million worth of Flex (FLEX) tokens is "not readily convertible to cash" and is exposed to speculative value, as outlined in a report by Bloomberg on September 19. Additionally, a majority of Hodlnaut Group's creditors, constituting a significant 60% of the total debt, have expressed their opposition to the OPNX deal.
The managers pointed to the significant devaluation of FLEX, which has lost nearly 90% of its value since OPNX proposed taking over 75% of Hodlnaut in early August 2023. At the time of the proposal, FLEX was trading at approximately $7. Current data from CoinGecko indicates that Flex Coin is presently trading at a significantly reduced value of $0.58.
Aside from their concerns related to FLEX, the interim managers of Hodlnaut expressed apprehension about the absence of an "immediate cash infusion or assets with readily available value," highlighting the declining values of major digital assets like Bitcoin (BTC) to $27,109 and Ether (ETH) to $1,630. Furthermore, they were dissatisfied with OPNX for not providing a clear repayment timeline for creditors' debts and for failing to disclose specific details regarding payment beyond 30% of liabilities.
FLEX operates as the native token for Coinflex exchange and is closely associated with the OPNX platform, given that its founders, Mark Lamb and Sudhu Arumugam, were also involved in the launch of OPNX.
Coinflex ceased all withdrawal operations in June 2022, with the CEO citing challenging market conditions and "ongoing uncertainty regarding a counterparty." Consequently, the exchange filed for reorganization in a Seychelles court, aiming to recover $84 million in losses from a substantial individual customer. Coinflex anticipates an official cessation of its operations on October 31, 2023, and has advised its customers to withdraw their funds from the platform before this shutdown date.
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