About two weeks after Zhu Su’s arrest, WOO Network has reached an agreement with Teneo, the liquidator of Three Arrows Capital (3AC), to buy back the shares and tokens it sold in 2021. Following the completion of this buyback, WOO Network has severed all remaining ties with bankrupt Three Arrows Capital.
Coingecko data shows that the current price of the WOO token is $0.170, a 24-hour increase of 1.4%.
How to deal with repurchased tokens and equity?
In November 2021, WOO Network completed a US$30 million Series A financing. Three Arrows Capital purchased approximately 25 million WOO tokens. Three Arrows Capital was also the largest investor in this financing.
WOO co-founder Jack Tan said, As everyone knows, Three Arrows Capital was a top brand at the time. They liked the project (WOO) and the team, so they led this round of financing. I cannot disclose how much they invested at that time , it’s off the record. But we’re still grateful they’re on board.”
The liquidators stated that while Su Zhu is serving his sentence, the liquidators will actively seek to engage with Su Zhu regarding the liquidation of assets. The completion of this repurchase will have an important impact on the WOO ecosystem. Jack Tan said, We are pleased to clear the uncertainty related to 3AC from the WOO ecosystem. We are actively working with the liquidator to ensure a fair transaction and buy back our shares and tokens from the 3AC legacy.
Regarding the acquisition price, WOO stated that the buyback of equity and tokens was attractively discounted. As part of the transaction, WOO also agreed to cancel 3ACs shareholding and increase the shareholdings of all other shareholders in proportion to the canceled shares. We are cleaning up the equity sheet, which is a necessary step. If we raise capital in the future, it will become clearer, Jack Tan added.
WOO claims that the tokens it buys back will be sent to a burn address, meaning these tokens will never enter circulation again. “Whenever Teneo sends tokens to a wallet owned by Woo, we destroy those tokens.”
Regulation is a double-edged sword
As for the experience of the bear market, WOO has drawn some lessons from it. Jack Tan has worked on Wall Street and has a unique understanding of risk and regulation. “If we look at the traditional space, a lot of banks almost went bankrupt after 2008, but no one would say they were too risky, but it just happened in a systematic way. No matter how much regulation there is, people will always find a way to take risks way, and then go bankrupt.”
“But we go back to that moment on Wall Street [referring to 2008], and the regulatory argument was that it wasn’t just the financial industry taking bold risks and losing money, but there was also a problem of systemic risk. I think one of the things that happened in the crypto industry last year was The important issues are systemic issues.”
Jack Tan pointed out that he is not in favor of stronger regulation, which will restrict the instinct of entrepreneurs and risk-takers. He believes that more important than regulation is that venture capital firms and investors understand the investments they are making, understand their investment risks and objectives. The more regulation there is, the less innovation there is. Regulation is a double-edged sword. I would prefer lighter regulation.
WOO will also pay more attention to risk management. “It is difficult to judge who are the real top investors and top players in the industry. We will ensure that risk management is properly carried out to ensure that we move forward in a stable and safe manner. The exchange continues to Collapse is a very dangerous thing for the industry, so we pay more attention to stability.
“The last 18 months have seen a wealth of bad news for our industry, including massive failures, regulator actions and more. Now that the system has been thoroughly cleaned up, we look forward to working with our partners Join the team in rebuilding the industry.”
When talking about future plans, Jack Tan explained, “We will continue to work with our partners and ecological projects to launch truly interesting features and products that are loved by users.”
