Terraform Labs Just Filed for Bankruptcy…and It’s Somehow a Good Thing?
TL;DR
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Terraform Labs (TFL) is the corporate liable for creating the bear-market-starting dumpster hearth of a stablecoin often known as ‘UST.’
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Terraform Labs ain’t in a great place, the corporate is getting sued, left proper and middle. A Chapter 11 submitting means TFL can proceed operations whereas going by means of the ‘reorganization course of.’
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Together with the announcement of the Chapter 11 submitting, TFL’s present CEO, Chris Amani, stated this: “This step protects our means to proceed working with the neighborhood on infrastructure, progressive instruments and merchandise, and different ecosystem assist,”
Full Story
Keep in mind Terraform Labs (TFL)?
(The corporate liable for creating the bear-market-starting dumpster hearth of a stablecoin often known as ‘UST’?)
Yeah, properly, they simply filed for Chapter 11 chapter.
And in the event you’re like us, you now have two urgent questions bouncing across the previous noggin:
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Wait…TFL hadn’t already filed for chapter?
Nope. We had been simply as shocked as you had been. -
What does this imply for TFL and its related crypto tokens?
If something, this chapter submitting is definitely a superb factor…
That final bit appears counterintuitive, proper?
Right here’s what we learnt after googling ‘advantages of Chapter 11 chapter’:
Terraform Labs ain’t in a great place, the corporate is getting sued, left proper and middle. A Chapter 11 submitting means TFL can proceed operations whereas going by means of the ‘reorganization course of.’
(Aka: the ‘we have to discover/generate some freakin cash to pay folks off’ course of).
A course of that – and that is the actually vital half – is assisted by the courtroom, the place orders are positioned to maintain the corporate’s (many) collectors at bay.
Together with the announcement of the Chapter 11 submitting, TFL’s present CEO, Chris Amani, stated this:
“This step protects our means to proceed working with the neighborhood on infrastructure, progressive instruments and merchandise, and different ecosystem assist,”
It’s eerily constructive information, coming from a seemingly unfavourable information story, no?
