Xclaim completes $7 million round A financing and embraces trading of major bank creditor claims

According to reports, Xclaim, a bankruptcy claims trading platform, has completed a round A financing of $7 million. Xclaim allows for the trading of major bankruptcy creditor claims, including FTX, Genesis, and BlockFi. At present, the claim price for FTX is 19 cents, higher than the 13 cents earlier this year, while Genesis is is 52.5 cents and BlockFi is 18 cents.

Bankruptcy claims trading platform Xclaim completes a round A financing of $7 million

Bankruptcy claims trading platform, Xclaim has successfully undertaken a round A financing, securing $7 million in anticipation of future operations. The success of this funding round is a signal of the growing appetite for platforms tailored for trading major bankruptcy creditor claims. Xclaim offers a reliable platform for creditors to sell their bankruptcy claims in the market, including claims from FTX, Genesis, and BlockFi. Currently, the claim prices for FTX, Genesis and BlockFi are 19 cents, 52.5 cents and 18 cents respectively, with FTX having gone up from 13 cents earlier this year.

What is Xclaim platform?

Xclaim is an online marketplace for trading credit-deferred payment obligations or creditor claims. The platform allows creditors to sell their claims to buyers in the market, at a price mutually agreed upon between the parties. Through the platform, creditors can avoid the time-consuming process of waiting for a distribution in their bankruptcy case, which takes as long as two to six years. The Xclaim platform makes it easier and quicker for creditors to monetize their claims for a fair price.

Why are bankruptcy creditor claims valuable?

Creditor claims are valuable assets. In the case of bankruptcy, creditors may receive a distribution of the debtor’s assets, which in turn arise from the sale of the debtor’s assets. The creditor claims entitle the holder to a percentage of these distributions. These claims can be sold to buyers in the market who expect to receive a higher distribution on the assets, as well as a higher value for the creditor claim. The more significant the claim’s value, the better its market potential for buyers.

The significance of Xclaim’s financing on the bankruptcy creditor claims market

Xclaim’s $7 million round A financing enhances the prospects of creditors who are in the hunt for a reliable platform to sell their claims at a fair price. The funding enables the platform to attract more users, thereby creating more liquidity in the creditor claims market. Improved liquidity translates to faster monetization of the creditor claims for the sellers. The financing positions Xclaim as a dominant player in the creditor claims market, attracting more investors willing to invest in the profitable venture.

The importance of claim price in creditor claim trading

The creditor claims market is a complex, yet rewarding space. Claim prices fluctuate depending on several factors, including the debtor’s position, the bankruptcy process timeline, and several other variables. Claim prices are also dependent on the market’s supply and demand. For instance, if the supply of creditor claims exceeds the demand, the prices may go down, and vice versa. The current price of FTX, Genesis and BlockFi claims on the Xclaim platform gives an indication of the market’s bullish sentiment on the claims, with FTX having gone up from 13 cents earlier this year.

Conclusion

The completion of the $7 million round A financing for the Xclaim bankruptcy claims trading platform marks a significant milestone in the bankruptcy creditor claims market. The platform’s reliability in creating a fair and accessible market for creditors to sell their claims has become more prevalent with this round of funding. Claim prices on the platform offer a good indication of market sentiment, making the platform an attractive space for buying and selling creditor claims.

FAQs

#1. What is Xclaim?

Xclaim is an online marketplace for trading bankruptcy creditor claims.

#2. What type of creditor claims can be traded on Xclaim?

The platform allows for the trading of major bankruptcy creditor claims, including FTX, Genesis, and BlockFi creditor claims.

#3. How significant is Xclaim’s financing in the creditor claim market?

The $7 million round A financing completed by the platform creates more liquidity in the creditor claims market for monetization of these claims.