News has broken out that the OPNX exchange has formally offered to buy most of Hodlnaut, a popular cryptocurrency lender headquartered in Singapore. Reports have it that the company (Hodlnaut) has found itself in a precarious financial state, and users who constitute more than half of the creditors have expressed a desire for liquidation over restructuring at the time of the bid.
A letter from the Interim Judicial Manager (IJM) managing Hodlnaut’s affairs states that 55.38% of the creditors with claims totaling S$228.3 million (about $170 million) have expressed a liquidation preference. The information available at the time of writing has made finding a workable solution for the struggling Hodlnaut more urgent.
Experts familiar with this recent development say that if the creditors approve the proposed agreement, OPNX Exchange will acquire a controlling 75% stake in Hodlnaut after the capital infusion. Su Zhu and Kyle Davies, who Co-found the (now-defunct) hedge fund Three Arrows Capital (3AC), have shown interest in taking advantage of this chance to increase their footprint in the cryptocurrency lending and borrowing market.
Investigation into the unfolding development shows that 30% of the claims of the long-awaited creditors would be paid out in FLEX and other tokens. A freelance cryptocurrency analyst, Ana Paula Pereira, wrote on Cointelegraph explaining the situation.
According to Pereira, they receive up to 95% of the corporate asset pool on a pro-rata basis, depending on which alternative would result in a superior value for the creditors. They will also be including close to $30 million In FLEX tokens in the settlement process, which may offer creditors a special chance to profit from the digital asset’s growing potential.
OPNX To Acquire Large Chunk Of Hodlnaut’s Shares, States Reasons
Compared to the current market pricing, the worth of FLEX tokens increases even more. FLEX is currently selling at $7.16 (according to CoinMarketCap), which significantly boosts the total capital influx, which is believed to be worth close to $215 million.
This development, Pereira added, is a compelling offer for creditors who would have previously favored liquidation but are now given a more profitable choice. OPNX Exchange offered to acquire a sizeable chunk of the Hodlnaut amid its precarious financial state.
Major industry key players have commended the company for this move. Another industry analyst, Godfrey Benjamin, commented, “OPNX has given the cryptocurrency community reason for optimism.” He added that “the offer demonstrates OPNX’s belief in Hodlnaut’s potential and its commitment to promoting development within the digital asset sector.”
However, industry analysts and investors closely monitor the situation as parties wait for the creditors’ final judgment. It is believed that the outcome of this bid may impact the dynamics of the cryptocurrency market as a whole and could provide a precedent for how similar instances are handled in the future.
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