Swedish Company Cryex That Tried To Build Blockchains For Banks Is Being Bought OutOctober 25, 2017 10:21 pm
Facing difficult economic times, Swedish-based bitcoin exchange Cryex, a company designed to build blockchains for banks, is instead being sold off for bottom dollar, Swedish media reported Wednesday.
Launched in 2015 when investors funded the company with more than 10 million dollars, Cryex is being sold to Safello in exchange for shares with no cash involved, the report said.
“Now the company is about to be sold,” Breakit reported. “A sale which is reported to at an extremely low price. Negotiations between the buyer, Safello, and Cryex began during the summer.”
The plan for Cryex was for it to find ways to facilitate bank transfers with distributed ledger technology, much in the way bitcoin operates, the report said.
The Cryex business plan, however, fell flat, as Breakit reported: The plan was to build a technique for linking blockchain to banking transactions, and putting banks in direct contact with the global system. Since then things have not gone as planned. Cryex has completely changed its focus – and was facing a difficult economic situation a year ago.
Cryex CEO Lotta refused comment on the impending sale. According to the Breakit article, Eek has referred all questions and concerns to Safello’s CEO, Frank Schuil.
Cyrex employees will now have joint ownership over the company after the deal is complete, the report said. Safello recently called a meeting of shareholders to determine whether the acquisition of Cyrex was the right move for the company.
The overall valuation of the Blockchain-building firm was undeniably low, Bitcoin.com reported.
The company is only worth $2.5 million for the purposes of the sale, the report said. However, investors pumped roughly $12 million USD worth of SEK into the company at the beginning, the report said.
“The valuation is astonishingly low, according to the basis of which Breakit has taken part. It is set at $ 2.5 million, equivalent to just over SEK 20 million. By comparison, Cryex investors have pumped a total of around SEK 100 million into the company.”
Nonetheless, both companies have agreed to follow through with the deal.
– WN.com, Jack Durschlag