Sep 19, 2023

FLEX Token Plummets 90% as OPNX’s $30M Hodlnaut Bid is Rejected

Crypto Market Plummets 90% as OPNX's $30M Hodlnaut Bid Rejected
OPNX’s $30M Hodlnaut bid rejected as FLEX token plummets 90%: Report

Cryptocurrency Lender Hodlnaut Rejects Buyout Deal

The interim judicial managers of the collapsed cryptocurrency lender Hodlnaut have reportedly declined the latest buyout offer, as the settlement token FLEX has plummeted 90%.

Hodlnaut’s administrators have rejected the takeover terms from OPNX, an exchange founded by Kyle Davies and Su Zhu, the co-founders of Three Arrows Capital (3AC).

In a recent court filing, the interim managers argued that the $30 million offer of FLEX tokens is “illiquid” and has “speculative value,” according to Bloomberg. Furthermore, a majority of Hodlnaut Group’s creditors, accounting for 60% of the total debt amount, also opposed the OPNX deal.

The administrators noted the drastic decline in FLEX since OPNX proposed to take over 75% of Hodlnaut in early August 2023. At the time of the proposal, FLEX traded at around $7. But according to data from CoinGecko, the Flex Coin is currently trading at $0.58.

Crypto Platforms and Their Impact on the Market

Apart from the concerns around FLEX, the interim judicial managers of Hodlnaut were also worried about the lack of liquidity in major digital assets such as Bitcoin (BTC) and Ether (ETH). The managers were unsatisfied with OPNX, as there was no timeline for creditors’ debt repayment and no information on payments beyond 30% of liabilities.

FLEX is the native token of Coinflex exchange, which is closely related to OPNX platform. Its founders Mark Lamb and Sudhu Arumugam were involved in the OPNX launch. In June 2022, Coinflex suspended all withdrawals due to extreme market conditions and “continued uncertainty involving a counterparty”. The exchange filed for restructuring in a Seychelles court as it seeks to recover $84 million in losses from a large individual customer. Coinflex is expected to officially cease operations on Oct. 31, 2023, and customers are advised to withdraw all funds from the platform by the shutdown date.

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