A Factom liquidation was announced following notice by investors, for a dissolution event earlier this month.
The notice came after the blockchain firm failed to source additional funding. As of now, Factom will go under receivership. This is according to a statement issued by the blockchain company’s leading investor. During a March 31st board meeting, Directors of Factom concluded the need for assignments of assets in the absence of further funding. Fast Forward holds at least 90% of the blockchain company’s shares and could control the receivership process.
Managing Director of FastFoward Ed McDermott expressed disappointment. Claiming they would take swift action to safeguard their position as lead investor. McDermott also promised to save the situation as much as they could, in light of the dissolution. However, the investment company director noted the possibility of getting any meaningful returns as uncertain.
Meaningful returns in this case being the amount raised in series seed funding. An amount estimated to be $700,000. Which presently might also have no value given the dissolution event. Meanwhile, the investors tabled a Simple Agreement for Future Equity at approximately $6 million.
According to the Director of FastFoward, his company will oversee the receivership process in a bid to understand what events resulted to lack of funding.
The inception of Factom came from the need to establish built in bitcoin protocols for maintaining immutable (unalterable) record keeping blockchain layer. The blockchain system was going to address the problems of cost, speed and bloat.
Impact of Factom liquidation on cryptocurrency exchanges
Meanwhile, Coincheck established the dissolution wasn’t going to have any impact on the perfomance of the cryptocurrency. However, they promised to investigate how the turn of events could possibly have an impact on cryptocurrency exchanges. Here is what CoinCheck had to say:
This won’t have an impact on the operation of Factom protocol and it doesn’t mean the cryptocurrency will disappear but we are investigating how it could possibly have an impact.”