Verona, New Jersey--(Newsfile Corp. - April 18, 2023) - Today Residual Token, Inc. dba unFederalReserve is pausing new work on all its business lines and projects, including ReserveLending, ReserveFunding, ReserveLending+ and ReserveStaking until further notice.
The company will seek a buyer for its software and intellectual property during this period.
Unfortunately, regulatory uncertainty as evidenced by the Treasury department's DeFI risk assessment, poor global economic conditions, and weak company performance have led the team to this decision. "The community is strong, the products are great, but unFederalReserve has been unable to secure long-term funding or generate enough revenue to offset the month-to-month operating costs," said Howard Krieger, co-founder of unFederalReserve. "I think we also have to take the various government entities at their word when they lay out the specific concerns that they will target through enforcement action."
Effective in the near term, supplying and borrowing on ReserveLending will be disabled. The company will keep the website operational for as many months as funds will allow so that the ReserveLending users have time to manage their positions accordingly. Please note that the Company has no control over the supplied or borrowed assets, nor does it know the identity of nor have means to contact any borrowers about their loans.
Should the website become disabled, the smart contracts comprising the platform will still be accessible using freely available developer tools.
Effective immediately, Howard Krieger is stepping down as CEO of Residual Token, Inc. dba unFederalReserve, and will cease to have control and oversight of the day-to-day operations. The former CEO, when asked for comment about the change, stated, "The time was right for a change in leadership for unFederalReserve, and I'm grateful for the many years spent, good friends made and dynamic experiences had as a result of this venture." Howard will remain the majority shareholder in the company.
In the interim, Duke Togo will be taking over as CEO. Duke has said, "Although this is tough for the community in the short term, we are doing this to have a shot to make it in the long term. I know I am not the Howie Wowie, and I will not try to be. We will still have access to Howard's insights in banking and finance as well. The goals of unFederalReserve remain unchanged, but I hope in the interim, that I can bring a new vision to the community. I look forward to working with the community on this challenge and will keep the open door policy that we have always had. We have a unique and wonderful community, coupled with great developers and technology. This is not the end, this is the start of another chapter and we as the community hold the pen. I promise to give you my best until we as a community find someone we think can take the project further."
The eRSDL token is unaffected by this development and will continue to be used for voting on proposals. Platform revenue will go, in part, to continue the company's buy-and-burn policy. Residual Token's will continue to support futurists who see freer banking systems, dynamic time-based stable products mirroring (and ultimately replacing) traditional financial products, and believe that overall benefits of this new technology will equally benefit consumers and corporations.
This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. There are or will be important factors that could cause the Company's actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: the ability of the Company to wind down Residual Token, Inc.'s operations and encourage the liquidation of the loans made using Residual Token, Inc.'s software in an orderly and timely manner; the Company's ability to successfully resolve claims and preserve any residual value of its assets; the Company's ability to obtain applicable regulatory or governmental approvals relating to the wind down process; the Company's ability to comply with the heightened regulatory scrutiny of companies that provide products and services to the digital asset industry; risks and uncertainties, including potential liability and restrictions on the Company's historical business, resulting from various litigation (including private litigation) and regulatory and other inquiries and investigations against or with respect to the Company, investigations from regulators, congressional inquiries and investigations from the U.S. Department of Justice; the timing and results of our additional procedures and documentation and the completion of audit procedures by our independent registered public accounting firm; The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person that such expectations, estimates and projections will be achieved.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/162929