Introduction
The following update is intended to provide further clarity regarding the steps ByteX has taken thus far, the progress made, as well as the challenges we are currently dealing with.
We would also like to make it abundantly clear that ByteX is an independent organization that has never ever been involved in the running of the day to day operations, or the financial management of the GokuMarket exchange.
Although we’ve been working closely with the GokuMarket management team, it is important to clarify that ByteX does not represent GokuMarket, nor can it comment on any of the legal proceedings that GokuMarket is currently involved with.
ByteX is a CeDefi platform headquartered in Canada. The decision to acquire the GokuMarket user base is in line with the company’s long term vision and international expansion plans. This step enables us to serve customers in 20 countries across the globe.
While we remain excited and optimistic about our decision, the due diligence and financial audit has taken a tremendous amount of work. We recognize the importance of clear and effective communication, and we have been doing our best to keep everyone up to date with as much of the relevant information as possible.
GokuMarket Financial Woes
As per the July 31st announcement referenced below, the insolvency of GokuMarket led to the point where it was no longer able to honor the financial obligation to its users. This was due to the failure of the prelaunch initiative which ultimately led to the depletion of the GokuMarket treasury.
ByteX has agreed to acquire and assume the liability for all non-prelaunch accounts totalling around 1 million users. The process of data migration has now begun and payment plans have been circulated with some of the users involved.
ByteX also agreed to evaluate the liability associated with the prelaunch users and to try and create a win / win solution that would involve a payment plan, as well as a share of future earnings with these users.
Non-Prelaunch Users
As previously highlighted, ByteX has now begun the process of the data migration for these users. Repayment plans are being circulated and users are in the process of getting transferred to the ByteX platform. Further instructions for setting up an account on the ByteX platform will be published on the announcement section of our FAQ page.
Prelaunch Users
Although the prelaunch user base represents only around 17,000 accounts, the figures associated with this group has been a lot more complicated to reconcile. It is also worthwhile to note that the liability made up by this group is a lot higher than originally understood.
ByteX has now circulated its first attempt at a proposed payment plan to around 10% of the prelaunch users who have been onboarded, of which the majority has accepted, and others were greatly disappointed.
While we understand and can sympathize with users who have lost some of their investments, it is important to recognize that ByteX was not the cause of this nor is it legally responsible for the business decisions made by the leadership of GokuMarket. ByteX can only commit to a payment plan that will allow it to stay true to its own mandate, which first and foremost has to do with running a sustainable business model that makes financial sense.
We are currently in the process of re-evaluating the initial payment plans to see if there is anything else we can commit to as we move things forward. What we will say at this time is that unless we can come up with a model that makes financial sense for ByteX and is acceptable to the prelaunch users, ByteX will withdraw its proposal to come up with a win/win solution and it will not be migrating this group of users to its platform.
In saying this, we realize that the financial implications of this decision would be disappointing all around since the outcome will be actually a lot worse than the payment plan ByteX initially proposed.
Next Steps
- Non-prelaunch users will continue to receive their payment plans and once these are accepted, users will be added to the ByteX platform.
- A modified repayment proposal will be sent out to the prelaunch users. Those who accept, will then be added to the ByteX platform.
- Those who do not accept the repayment proposal will not be migrated to the ByteX portal, and ByteX will have no further involvement in the GokuMarket balances owed to these users
- GMC tokens will be convertible to Zero tokens at a rate to be determined upon the Zero token launch.
Conclusion
In conclusion, we would like to once again thank everyone for their patience and support as we work together towards a mutually beneficial outcome.
Robert Balazs, CEO
