17 May 2023
After a year of pausing withdrawals and deposits, Vauld has come up with a restructuring proposal that will go to vote on 24th May 2023.
All those who had invested in Vauld would have received this email, that I paste below, while trying to explain what I understood from it.
Copy Pasted from the email
Short overview of our proposal:
This proposal aims to enable withdrawals for everyone as early as July/August 2023, as we work towards a possible quick resolution to the current situation.
Briefly, our proposal comprises of the following key features:
- Returning 100% of the INR held in Vauld wallets once scheme passes.
- A quick payout of potentially up to 55% in USD terms through an optional participation in initial Reverse Dutch Auction (RDA) or an even higher recovery through staying in the restructuring and exiting at subsequent RDAs or the Final Distribution, subject to recovery of illiquid assets.
- Pari-passu payout of all currently remaining liquid shortly after the Initial RDA and distribution of future recovered assets to all remaining creditors either via subsequent RDAs or pari-passu distributions.
What have I understood from this?
1. All depositors will get to vote on this proposal or not. We have a choice to say no to it.
2. If the proposal goes through (which I assume will be determined by the voting), then
- All INR that you had in the Vauld wallet (that you hadn't yet used to buy any token) will be returned to you.
- All tokens (in units) to a max of 55% will be returned to you. So if you had 100 ETH, for example, you will only get 55 ETH (as whatever the final number is) back. The range is expected to be between 45-55%.
Note: this is token in units. It is possible that you will get higher or lower in INR terms based on how the token price has moved in the past year
- After this the company's illiquid assets will be disposed of. I do not have an understanding of what their potential value is.
- Whatever is recovered, will be paid back to the customers - first to those who refused the proposal (so they might get higher than 55% of the token, but will have to wait for this entire process) and then to customers that said yes to the proposal.
- There is no indication of what that amount could be.
What am I doing?
I am opting for the proposal. I had 30L in Vauld, all in tokens, and I think I will get back around 17L in value (basis today's price), which is better than zero, which is what I had assumed it to be in the past year.
Update:
4th July 2022
At 8:21am on July 4th 2022, I received an email from Darshan, the CEO of Vauld. Due to the volatile nature of the crypto market, Vauld has decided to pause all withdrawals, trading and deposits. Which means our monies are stuck for now. This is extremely unfortunate and not something I would have wished for, when I worked with Vauld.
As all of us (that includes me - Even my money is with Vauld) wait to see what happens next, I hope you all invested wisely In crypto to no more than 5-10% of your total portfolio, as I have mentioned always.