Fighting the Inevitable
It seems that Factom Inc. has been fighting the inevitable these past few months. This past week saw the promising, but troubled, company officially file for Bankruptcy.
Filed as a Chapter 11 Bankruptcy, this move by Factom Inc. was undertaken due to the company’s inability to pay, roughly, $7.5million worth of debt.
Once viewed as one of the most promising blockchain companies around, with the accolades to show it, Factom Inc. has been unable to capitalize on their potential – Despite being awarded various grants over the years, and relationships with multiple government entities.
There are various forms of bankruptcy. While none represent an ideal situation to be in, Chapter 11 does at least provide Factom Inc. with the potential to turn things around. Under Chapter 11, which is a voluntary process, a company will be allowed to restructure and continue operations. All the while, Factom Inc. will be on the hook for paying of their creditors, over time.
This approach was somewhat unexpected, as many believed that Factom Inc. was on the cusp of entering receivership. Ideally, by choosing the path they have, Factom Inc. will be able to placate their creditors, while restructuring for a bright future.
The events discussed here today are, perhaps, to be expected. Over the past few months, Factom Inc. has been the subject of our attention on multiple occasions, as the company toyed with entering receivership.
Interestingly, these past events saw an announcement detailing this move, only to have Factom Inc., soon after, state that it was ‘premature’.
Founded in 2014, Factom maintains headquarters in Austin, Texas. Above all, the company worked in unison with various government entities over past years to develop innovative blockchain technologies.
CEO, Paul Snow, currently oversees operations
In Other News
With the volatile nature of blockchain industries, Factom Inc. is, by no means, the first company to declare bankruptcy. Multiple exchanges over the past year have each found themselves in this situation for varying reasons.