Understanding CoinFlex’s Proposed Restructuring
In a fascinating twist in the ever-evolving world of cryptocurrency, CoinFlex has made headlines with its latest restructuring proposal. As liquidity issues plagued the exchange, they took to their blog to outline a strategy to regain stability and trust from users.
The Breakdown of Ownership
Under the proposed plan, ownership of the company will shift significantly. A hearty 65% of the company will go to creditors, while the team doesn’t walk away empty-handed, securing 15% through an employee share option plan. Series B investors are in for the long haul too, ensuring they remain shareholders as CoinFlex seeks to rise from the ashes.
Divine Equity Drama
CEO Mark Lamb and Chief Revenue Officer Sudhu Arumugam didn’t pull their punches while discussing shareholder outcomes, noting that in reorganizations like this, “most shareholders get wiped out.” That means everyone from Ordinary to Series A shareholders, including the executives, will lose their equity stakes. Ouch! This may not be the news shareholders wanted to hear while sipping their morning coffee.
Innovating Recovery Tokens
In an attempt to appease creditors, CoinFlex has decided to introduce a new recovery token known as rvUSD. Instead of relying on its traditional FLEX Coin, creditors will receive rvUSD, equity, and the ever-popular USD Coin (USDC). This bold move might just be the trick to soothe ruffled feathers.
SmartBCH Alliance’s New Role
But wait, there’s more! The SmartBCH Alliance appears set to take the mantle of managing the SmartBCH Bridge, exchanging sBCH Tokens for BCC on a 1:1 basis. Their role as a creditor is significant, as they aim to ensure liquidity and trust during this turbulent time.
Final Approval and Next Steps
CoinFlex’s restructuring proposal awaits a community vote on September 25, and here’s a juicy tidbit: a majority of 75% of creditors will need to vote in favor of the proposal for it to pass. If approved, the plan will wend its way through Seychelles Courts for final clearance. If all goes well, CoinFlex hopes to embark on a new journey as a community-owned entity focusing on exciting prospects.
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