The company’s STORJ token fell 16% to around 6 cents. Nearly $20 million worth of tokens changed hands against a market value of around $27 million, meaning nearly the entire supply was surrendered in one day. The token is down 79% over the past year and 98% from its March 2021 high of $3.81.
The restructuring proposal contains a rarely seen bankruptcy provision: Storj said it plans to split ownership of the reorganized company between management, token holders and investors.
Token holders normally have no legal rights to an issuer and receive nothing through the Chapter 11 process.
The case extends an unusually busy week. BitMEX, the exchange that invented the perpetual swap, announced July 23 that it would shut down after 11 years, with daily volume down to around $400,000 and its BMEX token down more than 90%.
Its parent company, HDR Global Trading, said the platform was not insolvent and that assets exceeded liabilities, instead pointing to a strategic review that followed some $200 million in regulatory fines and a sales process that found no buyers.
BitMart announced its own cessation on Sunday, immediately stopping new deposits and trading orders, ending all trading on August 26, and setting a January 2027 close, with its BMX token down 58% on the news.