WOO Network's Game-Changing Move: Repurchasing Shares and Tokens from Bankrupt Three Arrows Capital
At the time of the Series A investment, Three Arrows Capital (3AC) was WOO's largest investor. They not only acquired equity but also a whopping 25 million WOO tokens, with the remainder scheduled to vest over the following 12 months. However, the winds of fortune shifted. WOO Network seized an opportunity and repurchased these shares and tokens at a significant discount, effectively cutting all ties with 3AC and its creditors.
WOO Network's announcement further revealed their intention to cancel 3AC's shares, distributing the ownership among other shareholders proportionally. The plot thickens as an additional 20 million tokens, newly repurchased, are destined for the burn address – a location beyond anyone's reach. This dramatic twist will undoubtedly have far-reaching consequences.
WOO repurchases all shares and tokens from 3AC’s estate after reaching a mutually agreeable settlement.— WOO (@WOOnetwork) October 11, 2023
As part of the transaction, all acquired shares will be canceled and the 20M tokens will be burned.
Full details here:https://t.co/HRhUmAagML https://t.co/MMRNJg0Y3M
At the time of this pivotal announcement, the WOO token was trading at $0.17. Although it had dipped nearly 50% since April, it was still up by an impressive 12.71% over the course of the year, according to data from CoinMarketCap. This puts the 20 million WOO tokens, recently reclaimed, at a value of approximately $3.4 million.
The First of Many Moves
In the tumultuous year of 2022, Three Arrows Capital became the first prominent cryptocurrency firm to face insolvency. Their financial woes were primarily attributed to the sharp declines of cryptocurrencies Luna and TerraUSD in May, coinciding with the FTX exchange's collapse. As a result, Three Arrows Capital initiated bankruptcy proceedings in the British Virgin Islands in late June, with court-appointed liquidators overseeing the company's dissolution and the settlement of its outstanding debts.
This remarkable decision by WOO Network marks a turning point in the crypto world. It showcases the adaptability and resilience of the industry, where bold moves can reshape the balance of power. With WOO's visionary repurchase, the saga of Three Arrows Capital's bankruptcy becomes not just a tale of adversity but a testament to the dynamic and ever-evolving nature of cryptocurrencies. Stay tuned for more game-changing stories in this exciting realm.