Factom will not liquidate, correcting prior claims last week

According to Coindesk, Factom will not liquidate, as previously claimed by its lead investor and London Stock Exchange listed, FastForward Innovations, last week. According to Factom COO Jay Smith, FastForward will put out a correction, backtracking on their press release that Factom would be liquidated after failing to raise additional funding. Factom instead reduced its staff 80% from 10 to just 2 people.

Factom says it is now renegotiating the Series B raise, proposing solutions such as having FastForward’s SAFE be converted into common stock once the raise reaches a high-enough threshold. Smith said the amount of control FastForward had in Factom was scaring off other investors.

Why it matters:

• Factom hasn’t noticeably reacted to the news and continues to be thinly traded. Nevertheless the new information marks a major turn of events for the Factom project.
• The Factom token hadn’t moved much on the original news of the company being liquidated either.