CoinFLEX Offers Restructuring Plan
Crypto exchange CoinFLEX has proposed a plan to change the structure of the platform after it faced excitement in the face of the collapse of the cryptocurrency market. Under the restructuring plan, CoinFLEX will own 65% of the company. The future plan will be agreed upon next week. Apparently, the shareholders of the current Series A and the crypto exchange itself will lose their capital.
Additionally, according to the reorganization plan, it is proposed to allocate 15% of the company's shares to the CoinFLEX team. The shares will be distributed among and over time will be transferred to employees, in accordance with the stock option plan. The main goal of the program is to support and motivate teams so that they can help and contribute to business development.
The restructuring plan implies that Series B investors will retain their shareholder status in CoinFLEX. They will also receive additional incentives for future participation in the exchange restructuring model. However, approval of the plan will require the approval of a minimum of 75% of creditors regarding the value of the native CFV token.
New life for CoinFLEX
If the restructuring plan is approved, CoinFLEX will provide the Seychelles judiciary with a list of conditions and documents. Based on this, the court will have to make a final decision on the restructuring plan. However, the chance that the court will not approve the reorganization remains. Therefore, shareholders will have to adjust the terms of the plan accordingly in order to avoid loss as much as possible. The revised plan must be approved by all relevant organizations.
On the other hand, if all goes well and the restructuring plan is approved by the creditors and the court, it will be implemented within six weeks. CoinFLEX is committed to taking the right path with this program as it values its shareholders.
"We are fully aware that this has been a painful experience for all of our contributors and stakeholders. We hope that after a successful restructuring, we will be back on a growth path and become a successful exchange."
Recall that back in June, the CoinFLEX crypto exchange had to stop withdrawing funds. The decision to suspend the withdrawal of funds, in addition to the market collapse, was also influenced by the uncertainty with counterparties.
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