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    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

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Home Web 3

Terraform Labs Just Filed for Bankruptcy…and It’s Somehow a Good Thing?

January 23, 2024
in Web 3
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Terraform Labs Just Filed for Bankruptcy…and It’s Somehow a Good Thing?
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TL;DR

  • Terraform Labs (TFL) is the company responsible for creating the bear-market-starting dumpster fire of a stablecoin known as ‘UST.’

  • Terraform Labs ain’t in a good spot, the company is getting sued, left right and center. A Chapter 11 filing means TFL can continue operations while going through the ‘reorganization process.’

  • Along with the announcement of the Chapter 11 filing, TFL’s current CEO, Chris Amani, said this: “This step protects our ability to continue working with the community on infrastructure, innovative tools and products, and other ecosystem support,”

Full Story

Remember Terraform Labs (TFL)?

(The company responsible for creating the bear-market-starting dumpster fire of a stablecoin known as ‘UST’?)

Yeah, well, they just filed for Chapter 11 bankruptcy.

And if you’re like us, you now have two pressing questions bouncing around the old noggin:

  1. Wait…TFL hadn’t already filed for bankruptcy?
    Nope. We were just as surprised as you were.

  2. What does this mean for TFL and its associated crypto tokens?
    If anything, this bankruptcy filing is actually a good thing…

That last bit seems counterintuitive, right?

Here’s what we learnt after googling ‘benefits of Chapter 11 bankruptcy’:

Terraform Labs ain’t in a good spot, the company is getting sued, left right and center. A Chapter 11 filing means TFL can continue operations while going through the ‘reorganization process.’

(Aka: the ‘we need to find/generate some freakin money to pay people off’ process).

A process that – and this is the really important part – is assisted by the court, where orders are placed to keep the company’s (many) creditors at bay.

See also  Transforming Transactions: The Future of the Global B2B Payments Market

Along with the announcement of the Chapter 11 filing, TFL’s current CEO, Chris Amani, said this:

“This step protects our ability to continue working with the community on infrastructure, innovative tools and products, and other ecosystem support,”

It’s eerily positive news, coming from a seemingly negative news story, no?

Tags: BankruptcyandFiledgoodLabsTerraform

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