FLEX Token Plummets 90% as OPNX’s $30M Hodlnaut Bid is Rejected

Cryptocurrency Exchange OPNX Proposal Rejected by Hodlnaut Administrators

The interim judicial managers of the collapsed cryptocurrency lender Hodlnaut have recently denied the latest buyout offer from cryptocurrency exchange OPNX, which was established by Kyle Davies and Su Zhu, the co-founders of Three Arrows Capital (3AC).

In a court filing, the interim managers argued that the $30 million offer of Flex (FLEX) tokens is “illiquid” and has “speculative value,” Bloomberg reported on Sept. 19. A majority of Hodlnaut Group’s creditors, accounting for 60% of the total debt amount, also opposed the OPNX deal.

The administrators noted that FLEX has dropped by approximately 90% since OPNX proposed to acquire 75% of Hodlnaut back in early August 2023. At the time of the proposal, FLEX was trading at around $7; however, according to CoinGecko data, the Flex Coin is now valued at $0.58.

FLEX, Coinflex and OPNX

Apart from the issues related to FLEX, the interim judicial managers of Hodlnaut were concerned about the lack of injection of assets with similar liquidity as major digital assets like Bitcoin (BTC) or Ether (ETH). The managers were also dissatisfied with OPNX for not providing a timeline for the repayment of creditors’ debts and no details about the payment beyond 30% of liabilities.

FLEX is the native token of the Coinflex exchange, which is closely associated with the OPNX platform as its founders Mark Lamb and Sudhu Arumugam were involved in the OPNX launch. In June 2022, Coinflex suspended all withdrawals citing extreme market conditions and “continued uncertainty involving a counterparty”. The exchange filed for restructuring in a Seychelles court to recover $84 million in losses from a single customer. Coinflex expects to officially cease operations on October 31, 2023, advising its customers to withdraw all funds from the platform before the shutdown date.

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