An exchange soon to be in top form? – After the partial resumption of withdrawals on CoinFLEXthe cryptocurrency exchange, which is in the list of victims of the bear market, offers its restructuring plan to its creditors.
CoinFLEX: a big YES to get out of the crisis
The victory is overwhelming. 98.63% CoinFLEX creditors voted for the adoption of the restructuring plan, which the cryptocurrency exchange had submitted to them. Voting began on September 25 and ended on September 27 at 4:00 UTC. The company must now obtain the green light from the Seychelles court in order to implement the various points of its restructuring programme.
In his proposal published on September 21, CoinFLEX believes that the process of implementing this restructuring “should take up to 6 weeks”. However, the crypto exchange is committed to implementing its program ” as fast as possible “.
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Shareholders leaving and others arriving
The restructuring proposal largely concerns a recomposition of the various players that make up its capital. While the creditors and company employees will hold respectively 65% and 15% of the shares they will acquire over time, on the contrary, the investors during series A will lose their involvement.
Nevertheless, Series B investors will remain shareholders of the company following this reorganization. To justify this decision, the company highlights the fact that CoinFLEX and “the Ad HOC group” recognized ” added value “ that these investors can bring to the crypto exchange. A contribution that will benefit all shareholders.
Series B investors will also receive shares in the future, depending on the level of this added value contribution.
Restructuring of CoinFLEX: the additional points of the program
CoinFLEX’s restructuring plan also includes provisions on the composition of its members. board of directorswhich sees the arrival of representatives from the platform’s depositors, SmartBCH, Series B investors and an independent director.
The reorganization proposal also mentions the agreement that CoinFLEX has entered into with the SmartBCH Alliance. SmartBCH is the sidechain of Bitcoin Cash (BCH) compatible with theEthereum virtual machine and web 3 APIs.
In a post from October 18 last year, CoinFLEX discussed its ambition to issue its stablecoin FlexUSD as the first such cryptocurrency on SmartBCH. This post illustrates the closeness between CoinFlex and the project.
Through this agreement, the SmartBCH Alliance will use its bitcoin cash (BCH) to ensure that the sBCH tokens on the sidechain that CoinFlex users hold are exchangeable for BCH at a 1:1 ratio.
Finally, the proposal goes back to the nature of the assets that the creditors had to obtain. CoinFLEX had indicated that the company would distribute rvUSD tokens and FLEX Coin to them, as well as shares in its equity. The restructuring plan which was put to the vote finally evokes a allocation of USD Coin (USDC) instead of the FLEX Coin.
Rather than distribute them, Series B investors and the Ad Hoc Group decided to use “large holdings in Flex Coin” to support the crypto exchange’s marketing plan and for other incentives necessary for its growth or to keep these tokens on the company’s balance sheet.
On paper, CoinFLEX seems to have found a way out of the crisis that almost all of its creditors have validated, unlike this platform which is encountering significant financial difficulties and which is in the sights of regulators.
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