Gamedex is currently in hibernation mode, and at an inflection point in our journey. This short blog post is a succinct and transparent explanation of our current situation.
First, some context: Gamedex raised funds from backers in early 2018, planning for a token sale in Q4 2018. Due to the cryptocurrency market collapse, and with the best interests of our backers in mind, we decided against going forward with a December 2018 token sale.
While Gamedex has adequate cash to continue in hibernation mode until the market improves, our failure to perform a December 2018 token sale has resulted in debt to our backers which, in excess of our cash reserves, has rendered Gamedex insolvent.
Since the beginning of 2019, we’ve worked with each of our backers to come to agreements which would allow Gamedex the time it needs to succeed. We have tentative agreements, in principle, with all backers except one. Unfortunately, the remaining backer is our largest, and the law requires that we have their cooperation in order for us to continue with Gamedex.
Until such an agreement is made, or until our largest backer elects to exercise their prerogative to initiate liquidation proceedings, the directors of Gamedex are unable to actively run the business, despite our wishes and the wishes of the majority of our supporters. We are at an impasse and will continue to wait patiently for our largest backer to make their decision.
At all points in our journey, we’ve aimed to be as open and and transparent with our community as possible, but the past few months has required unusual discretion. For months, we have been optimistic about an impending resolution, and wanted to avoid jeopardizing ongoing negotiations. Additionally, our ability to communicate frankly with our community regarding our backers is restrained by confidentiality agreements.
We will continue to update our community through this blog and our website as our situation evolves. We appreciate your continued support and look forward to continuing to build Gamedex into the product you deserve.
Cam, Chris, & Henno