- OPNX has launched a pitch to inject $30 million into struggling lender Hodlnaut.
- A portion of the creditor payout would be funded by the capital infusion, which would be made up of FLEX tokens.
In a notable strategic maneuver underscoring the dynamic landscape of the cryptocurrency realm, OPNX Exchange has officially initiated a call for bids aimed at acquiring Hodlnaut, a reputable crypto lending platform headquartered in Singapore.
Hodlnaut declared bankruptcy in August, and its restructuring is now being overseen by a Singapore court.
This strategic step signifies OPNX Exchange’s proactive stance in diversifying and expanding its presence within the constantly evolving blockchain and cryptocurrency sector.
The proposed transaction would introduce a substantial infusion of approximately $30 million worth of FLEX tokens into Hodlnaut’s structure, serving as partial coverage for outstanding creditor claims.
FLEX stands as the intrinsic token of CoinFLEX exchange, a venture founded by luminaries Mark Lamb and Sudhu Arumugam, who, in conjunction with Kyle Davies and Su Zhu, pioneered the establishment of OPNX.
Davies and Zhu boast the role of co-founders of the erstwhile crypto hedge fund Three Arrows Capital. Offering insights into this development, Lamb conveyed to Bloomberg:
“Our perception of the Hodlnaut platform is one of substantial promise, and we eagerly anticipate forging a closer collaborative bond.”
In the midst of these proceedings, the provisional judicial administrators of Hodlnaut voiced their objection to the direct transmission of the OPNX bid by the company’s directors to its users.
In response, OPNX subsequently formalized the submission of the bid within the judicial domain. Despite these maneuvers, the ultimate outcome of this bid rests in a realm of uncertainty
With FLEX tokens currently trading at an approximate value of $7.16 according to CoinMarketCap, this capital injection would effectively translate to nearly $215 million. Worth noting is that the restructuring process for Hodlnaut is currently under the jurisdiction of a Singaporean court.
Should the proposal receive approval from the creditors, a noteworthy shift in ownership would occur, with OPNX slated to possess 75% ownership of Hodlnaut post-capital infusion.
Notably, creditors would be entitled to receive 30% of their claims through FLEX tokens and other tokens, or an equitable pro-rata payment of up to 95% of the accessible corporate asset pool. These details are gleaned from documents that have come to light, as reported by Bloomblerg.
Hodlnaut, based in Singapore, was one of the victims of the 2022 crypto credit crisis, which resulted in the failure of a wide range of lenders, including BlockFi, Voyager Digital, and Three Arrows Capital.
Hodlnaut, on the other hand, ceased withdrawals in August 2022 after losing approximately $190 million in the aftermath of the Terra Luna catastrophe. The firm was placed under creditor protection by Singapore’s High Court at the end of August 2022.