Storj (STORJ)

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@storj Management and Board have commenced a voluntary, court-supervised financial restructuring — an accelerated reorganization designed to resolve legacy liabilities that predate the current strategy, and to give the business time and protection to move forward.

@storj has focused its attention to its core business and is in the process of dispositioning previous acquisitions and non-essential operations. 

Since acquiring @storj , Inveniam has supported this focus on Storj’s original business proposition and has continued to support Storj throughout, and it endorses this reorganization as the right path to a sustainable future and ownership by the management team, decentralized community, Token holders, and potential investors. Storj’s business has been right-sized, its team is strong, and we intend to support it through the process.

For more information, https://t.co/wQdZetE326

Storj Labs' Chapter 11 filing, is the STORJ token safe?

Following the recent bankruptcy filing of MoveMent Lab, Storj Labs has filed for Chapter 11 under US federal bankruptcy law.

Complete bankruptcy corresponds to Chapter 7, while Chapter 11 is not a liquidation process but a corporate restructuring procedure that allows a business to continue operating while reorganizing its debts.

Storj Labs also stated that it will keep its services running normally and maintain customer support during the restructuring period.

In fact, STORJ is also a decentralized storage network, and the nodes that store data are operated by participants worldwide.
Therefore, the company's difficulties do not cause the network to stop immediately or the token to disappear.

However, this case also illustrates the realities of decentralized projects.

No matter how much a project aims for decentralization, development, business operations, marketing, partnerships, and ecosystem expansion are most often handled by an operating company or foundation.

Many coin projects have the ultimate goal of decentralizing the operating entity (e.g., via a DAO), but in practice almost no project has actually achieved this.

Moreover, if a project generates no revenue and is still in its roadmap development phase, decentralizing the operation may be an untenable notion.

Consequently, if the operating entity wavers, the project's growth rate is inevitably impacted.

Here is something investors must consider.

Decentralization and profit generation are separate issues.

A blockchain being decentralized does not automatically keep a project alive.

Hiring developers, running services, acquiring protocol users, and expanding the ecosystem all ultimately require continuous cash flow and a revenue model.

I think this Chapter 11 filing by Storj Labs serves as a case that shows it's difficult to sustain a project over the long term with just good technology.

The exchanges' responses are also a variable.

Domestic exchanges said that problems have arisen regarding the project's operational stability or investor protection.