Factom, a blockchain company, has failed to secure further funding to sustain itself. As a result, the company has now been forced to begin the process of liquidation.
Liquidation After Failure To Get More Funding
Through a notice published on the 2nd of April, 2020, FastForward, the largest investor within the company, announced the “dissolution event” to the public. Through the statement, FastForward explained that the Factom directors within the 31st of March board meeting had come to a conclusion. This conclusion was that, due to the lack of future funding being on the horizon, the company must begin the process of assigning various assets to its creditors.
FastForward cited Factom’s overall failure to secure additional funding as a cause, declaring that the company will now enter receivership. FastForward stands as the largest creditor in the blockchain company, holding over 90% of Factom’s shares, and was in control when it came to a decision.
Hopes For Substantial Returns
FastForward stated that it had initiated the process of receivership in order to try and understand what events had led to the position the company was currently in. This came from the Director of Fast Forward, Ed McDermott, as he shared his views about the company’s liquidation.
McDermott stated that FastForward was extremely disappointed once the noise had reached the company that Factom would liquidate. He further noted that his company was taking immediate measures to protect their positions best, as this Dissolution event occurs under the Simple Agreement for Future Equity. They will do this as best they can, under the circumstances, though McDermott stated that it’s uncertain in regards if they could generate any meaningful return.
The Old Ones Die Out
This “meaningful return” encapsulates a series of seed funding that may not have any value left and ran the company $700,000 out of its pocket. The Simple Agreement for Future Equity, or SAFE as it’s aptly called, was valued at a rough $6 million on the 30th of September, 2019.
Factom stands as one of the early pioneers of the Bitcoin blockchain, being one of the companies responsible for the new protocols built within it. Factom itself had intended to address the problems of bloat, cost, and overall speed. Many platforms now operate within the Factom protocol, as a testament to its past success. The Factom Protocol serves as an unalterable record-keeping system, living as a data layer within the overall blockchain.