RChain Cooperative May Need to Liquidate RHOC Holdings to Remain Solvent

Assets and ICO. Initially RChain's private community sale of RHOC raised $30 million, retaining a large reserve to continue financing ecosystem development.

Readily accessible assets include $2.2 in cash and approximately $1.5 million in liquid cryptocurrencies.

The company could also liquidate its $1.5 million property, which is allegedly a "House in Seattle for cooperative members to stay in," according to the Block Crypto.

410.7 million RHOC sent to reserve wallet RCM, 50.6 million sent to token sale wallet, and 4 million sent to research wallet, for a total of 465 million RHOC. Based on these current figures, the organization's reserve of 465 million RHOC would currently be valued at approximately $13 million, down from $63 million.

Daily volume for RHOC ranges from $90,000 to $400,000, which indicates that liquidating all $13 million worth of RHOC is likely impossible without significant slippage-meaning that RChain Coop is unlikely to receive the full $13 million if it sold its holdings.

RChain's contractual obligations-agreements that may be potentially renegotiable-include $5.6 million for "Immersion," which is likely one of the payments for rights to the audio codec mentioned earlier-$2.2 million for "Management Fee Strategic Partnership" with "Reflective Ventures," a blockchain specific venture fund that works closely with the organization-and, $3.6 million for "Pyrofex," a contract blockchain development firm tasked with building much of RChain's software.

The Cooperative estimates 2017 income taxes payable of $3.5 million and has not yet published estimates for 2018 income taxes and taxes related to revenues from selling RHOC. Other notable, but smaller liabilities include $393,000 in "Founders Compensation" and $120,000 for "Website." Overall, it's uncertain which of these liabilities are renegotiable.

These liabilities total at least $16 million, not including pending tax estimates.

Netted against accessible assets of $5.2 million, this leaves a deficit of at least $10.8 million that is contractually payable in under 9 months.

If the Cooperative is unable to pay its debts using its accessible assets, then the organization will either need to renegotiate its contracts, find additional financing, or liquidate a portion of its 465 million RHOC to remain solvent-or all of the above.