The future of Singaporean cryptocurrency lender Hodlnaut seems to hang in the balance as OPNX exchange has recently initiated a bid to acquire a staggering 75% of the firm. Hodlnaut, a platform that has been caught in bankruptcy proceedings, might potentially see a revival through a capital injection of almost $30 million in FLEX tokens, brokered by OPNX exchange. The proposed infusion is positioned to alleviate part of the creditors’ payout and outstanding claims.
FLEX, the native token of CoinFLEX exchange, is pivotal in this transaction thanks to OPNX’s co-founders Mark Lamb and Sudhu Arumugam, who were also co-founders of CoinFLEX. Other OPNX co-founders include Su Zhu and Kyle Davies, founders of now-bankrupt hedge fund Three Arrows Capital, who are currently being pursued by creditors in the United States.
Although the proposed deal offers current creditors 30% of their claims in FLEX and other tokens or a pro-rata payment of up to 95% of the available corporate asset pool under certain conditions, there’s an undercurrent of scepticism over the appetite of creditors to accept the OPNX deal. Taking into account the past desire of Hodlnaut’s creditors to liquidate the company amidst the failing search for fresh capital, it is questionable whether this lifeline will be accepted.
On the other end of the spectrum, Lamb, an OPNX co-founder, conveyed an upbeat outlook for Hodlnaut, stating their approach geared towards averting forced liquidation, which would require selling the user cryptocurrencies at their current depressed asset values. There are, hence, potential advantages for Hodlnaut in pushing for this proposed deal.
However, beneath this positive spin, the spectre of unresolved legal issues may play spoilsport. Hodlnaut had previously halted withdrawals due to a liquidity crisis and today functions under judicial management, a Singaporean law that provides temporary legal protection. This factor injects profound uncertainty into the promises of revival and transformation.
Overall, while the proposed deal embodies potential revitalization for Hodlnaut, the package spins on several volatile variables, making the future of this crypto lender uncertain. As we’ll continue to watch the arrangement unfold, only time will reveal whether the OPNX bid signals a lifeline or a blip for Hodlnaut.
Source: Cointelegraph
