Blockchain Project RChain Cooperative May Need to Sell Off RHOC Tokens to Remain Afloat

RChain’s most recent and available October balance sheet indicates poor performance on the firm’s part, which could possibly lead them to bankruptcy. Upon exploring the balance sheet, it is evident that the total liabilities of approximately $16M greatly exceeds that of the total assets of $5.5M.

This is sure to leave many puzzled, given that the debt is quite immense. A post covering the specs of RChain’s downfall has since been published by a crypto news outlet, Crypto Slate, along with a possible way out ( Here’s what has been shared in brief:

Reason(s) Why RChain Is Losing Attention

As per the claims made, the project first emerged as a solution to Ethereum’s scalability concern. Its native token, RHOC started fairly strong at the beginning of 2018 only to see it fall all the way to a little over a penny. As per Crypto Slate’s reporting, the continuous downfall is a result of the firm’s poor financial decision-making. In particular, RChain’s decision to purchase a “5-year audio codec license […] for $23.5 million” is deemed a possible reason for the firm’s suffering.

Sources Of Assets And Income

RChain managed to raise nearly $30M from its private sale and also carries $2.2M in cash and $1.5M in liquid cryptocurrencies.

The news outlet supposedly reached out to RChain’s Director of Content, Derek Beres, who has since updated the former on total assets being held. They go as follows:

  • 410.6 Million RHOC sent in RCM
  • 50.6 Million RHOC sent in “sale wallet”
  • 4 Million sent to “research wallet”

Hence, the total number of RHOC tokens that the firm currently holds is about 465 Million, which is down from Crypto Slate’s anticipated 480 Million. Given that the token has since lost a lot of value, the 465 Million today is expected to be worth about $13M, which is down by over 79%.

Crypto Slate trusts liquidating its $1.5M property could perchance help the firm to revive from its continuous downfall, especially when said property is for its “cooperative members to stay in (Block Crypto).” However, this is deemed impossible due to its significant daily volumes.

Incurred Debt To Date

Some of the debt that RChain has a year to pay off goes as follows:

  • $5.6M for rights associated with the aforementioned license
  • $2M for management-related fees
  • $3.6M for Pyrofex, a firm devoted to building RChain’s software
  • $3.5M for taxes payable”

Increased Changes To Cooperative’s Board?

According to the claims made, RChain’s board has witnessed a number of changes. Some of the big players who have since resigned from their posts include, “lead developer, Medha Parlikar, CFO, Kate Gonsalves, […], COO, Kenny Rowe,” notes Crypto Slate. Rowe allegedly left the firm due to an opportunity that came his way, which he deems “a better fit” for himself and his family.

Evidently, things are looking quite bad for RChain. How much has changed since October of 2018 has not been shared? However, considering the crypto market’s current trends and the fact that only four months have passed, it is unlikely that RChain has managed to greatly recover. What are your thoughts on the falling of said businesses? Are you expecting more of its likes in the time to come? Let us know in the comments below.

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