Founder Left, Altcoin Crashed! Will the Project Be Closed? - Coinleaks
Current Date:November 7, 2024

Founder Left, Altcoin Crashed! Will the Project Be Closed?

DeFi stablecoin exchange mStable is pending an acquisition offer. “We’ve been actively trying to follow an M&A route for four weeks,” says the protocol’s strategy leader. The altcoin price has lost more than 90% of its value in a year due to the problems it has experienced.

mStable seeks a way to survive

Decentralized stablecoin investment service mStable has been hit by falling product revenue and significant losses, including one co-founder. But backers of the exchange and yield generator hope to keep it alive through a merger with another team. The protocol’s strategy leader, nicknamed 0xloth, said that at least four decentralized finance (DeFi) projects are expected to submit purchase offers for mStable by the end of Friday. At press time, on-chain asset management service dHEDGE presented the first proposal on the mStable forum. “We have been actively trying to follow an M&A route for four weeks,” 0xloth said.

A buyer can purchase mStable’s crypto assets, team and technology, including smart contract-based vaults for depositors to earn returns on stablecoins. Holders of mStable’s governance token MTA will ultimately vote on which proposal to accept.

MStable is a protocol for exchanging and lending stablecoins on the Ethereum and Polygon Blockchains. According to DeFiLlama, the yield generation service has over $11 million in cryptocurrencies at the time of writing. This makes it the 18th largest DeFi altcoin project for Collateralized Debt Positions.

Altcoin melted, the founder left, the search for a solution continues…

The bidding process is the culmination of a month-long frenzy from key contributors to save mStable from an uncertain future. cryptocoin.com As we reported, co-founder James Simpson announced on the project forums in early February that he was leaving mStable after serving nearly four years. Referring to the MTA token, which has lost 93% of its value at 2 cents in one year, he made the following statement:

The altcoin project will find it very difficult to upgrade with the current token given its value. Protocol doesn’t earn enough to be self-sustaining from its products. Also, the runway of the decentralized autonomous organization (DAO) continues to decrease every month and will run out in about 12 months in the current process.

James Simpson suggested three options in his post:

  1. closing mStable completely.
  2. Fine operations and waiting until the next bull run.
  3. Acquired by another DeFi project.

“This could give MTA holders a potential premium in the face value of their Treasury Assets and a potential advantage in the case of a local token swap,” James Simpson said in the post. The proposal by dHEDGE, the only bidder at press time, does not appear to include a token swap or any other form of compensation for token holders. Instead, it offers to “set a floor price” in the MTA for the benefit of holders.