The interim judicial managers overseeing the affairs of Hodlnaut, the collapsed cryptocurrency lending platform, have taken a firm stance against the latest OPXN buyout offer. Their rejection centers around the assertion that the proposed $30 million deal involving Flex (FLEX) tokens is “illiquid” and carries a “speculative value.”

OPNX’s Takeover Offer and Hodlnaut Financial Woes

The rejected takeover terms originate from cryptocurrency exchange OPNX, founded by Kyle Davies and Su Zhu, who are also co-founders of the now-defunct hedge fund Three Arrows Capital (3AC). These terms have not found favor with Hodlnaut administrators, as they believe the FLEX tokens offered in the deal have depreciated significantly.

In fact, Flex tokens have seen their value plummet by approximately 90% since OPNX initially proposed acquiring 75% of Hodlnaut in early August 2023.

Concerns Surrounding FLEX Tokens and Liquidity

The criticism of the buyout offer revolves mainly around FLEX tokens, which, at the time of the initial proposal, were trading at around $7.

OPXN Deal rejected by Hodlnaut citing illiquid FLEX tokens.

Presently, the Flex Coin has a significantly reduced value, trading at $0.58, according to CoinGecko data. The administrators contend that this substantial loss in value renders the tokens ill-suited for settling Hodlnaut’s debts.

Lack of Cash or Liquid Assets and Payment Uncertainty

Beyond concerns about FLEX tokens, Hodlnaut’s interim judicial managers expressed apprehension regarding the absence of cash or assets with comparable liquidity, such as Bitcoin and Ether.

Furthermore, they pointed out that OPNX’s proposal lacked clarity on the timeline for repaying creditors’ debts, and offered no details concerning payment beyond covering 30% of liabilities.

Creditor Opposition and Ill-Fated Deal

Compounding the rejection of the buyout offer, the majority of Hodlnaut Group’s creditors accounting for 60% of the total debt, have voiced their opposition to the OPNX deal. Further, this collective resistance underscores the difficulties faced by Hodlnaut as it navigates its financial challenges and seeks a viable resolution to its outstanding obligations.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.