Hodlnaut’s takeover by the OPNX exchange is facing challenges after the interim judicial managers called the exchange’s tokens “illiquid’ and “speculative.“
According to Bloomberg, Hodlnaut administrators have opted out of OPNX’s $30 million acquisition. Along with the administrators, over 60% of creditors of the Hodlnaut Group have also opposed the deal.
Why Hodlnaut Creditors and Judicial Managers Rejected Deal
The OPNX exchange offered to buy a 75% stake in the troubled crypto lender Hodlnaut last month. OPNX exchange wanted to fund the acquisition with Flex Coin (FLEX) worth $30 million.
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However, Hodlnaut administrators believe that FLEX tokens are “illiquid” and have “speculative value.” The court document also mentioned other reasons, such as:
- No injection of cash or assets with similar liquidity
- No timeline for repayment of creditors’ debt
- No details of payment beyond 30% of liabilities
When OPNX offered to acquire Hodlnaut in August, it also faced community backlash. Some believed that OPNX was trying to trade worthless internet currency for real equity in Hodlnaut.
FLEX is linked to the CoinFLEX exchange, whose co-founders, Mark Lamb and Sudhu Arumugam, are part of the founding team of OPNX. In August 2022, the exchange froze the withdrawal and filed for restructuring in the Seychelles.
The FLEX token price has been subject to volatility since Monday, when it skyrocketed to $2.4809 before subsequently crashing. Overall, it is up by 16.22% in the past 24 hours, trading at $0.5841 during press time.
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