We understand that there has been media speculation and are writing to clarify misconceptions about the leaked materials concerning the proposed “GTX” Exchange. Please note that given the nature of ongoing discussions with various parties, we have not been able to share an update about the proposed plans, but aim to do so once a possible round or partnership materializes.
Building a marketplace for trading claims (in addition to crypto and potentially other assets) is an evolution of CoinFLEX’s commitment to building open and transparent financial markets. Any new funds raised will be used for operational growth, which we strongly believe will increase value for CoinFLEX creditors. This avenue will not only be an opportunity to serve a large number of existing crypto creditors but, in doing so, will also bring new volumes to the exchange through crypto trading.
Above all, we are committed to ensuring that any decisions and actions taken by CoinFLEX are in the best interest of CoinFLEX creditors.
Please refer to the FAQ below for further information:
What is happening to CoinFLEX management?
Both Mark and Sudhu will remain, with Mark continuing as CEO. As we raise funds, CoinFLEX may see an addition in key members as it looks to build and grow operations through the new exchange entities.
What is going to happen to CoinFLEX?
We could rebrand CoinFLEX into this new entity. We will not use GTX; it currently serves as a placeholder name. We are also looking at creating exchanges for other asset classes which will have their own entities and brand names – these will all be under the HoldCo that creditors will be receiving equity in following the restructure. We believe that these business lines will greatly increase the value of such equity.
How will creditors benefit from this project?
CoinFLEX creditors/Series B will be the largest class of shareholders, and we are also discussing other benefits. Any funds raised will be used to grow the company and its equity value for shareholders, including the CoinFLEX creditors.
What are we trying to achieve from this and other projects?
By creating and offering a product such as the proposed exchange, we will be able to provide an avenue to liquidity that current crypto creditors lack from many different platforms and also bring in new volumes to the exchange through crypto trading.
We are also considering adding other asset classes, such as equities and bonds. Several avenues are being considered for building out regulated venues/exchanges for these assets. Over the last few months, we have made significant progress in discussions with regulators and partners in highly regarded jurisdictions. These opportunities will increase the value for CoinFLEX creditors (via the equity issued to them) as we continue to build open markets for assets that currently don’t have transparent marketplaces.
Who gets a say on any proposed new ventures?
The Reconstituted board of the HoldCo, which includes:
- Platform depositors
- SmartBCH holders or, in the event the transactions contemplated by the SmartBCH Agreement close, the SmartBCH Alliance
- Series B Holders
- An Independent Director nominated by Platform depositors and reasonably acceptable to the Series B Holders.
The 5th board seat is a management member and management will abstain from voting on this proposal.
Reference the CoinFLEX Restructuring Term Sheet