Avalanche Token Holder Forced to Use Cash or Bitcoin for Liquidity

Avalanche (AVAX) token holder AVAX One has been dealt a blow by its lender, who is demanding cash or Bitcoin repayments over the tokens. The lender has tightened the terms of their debt agreement, excluding AVAX tokens from a new minimum liquidity requirement.

The amended terms require AVAX One to maintain at least $3.5 million in liquidity, with only cash and Bitcoin eligible to meet the threshold. This means the company's large AVAX treasury cannot be used to meet the requirement regardless of its market value.

AVAX One has also paid $1.3 million to secure a waiver of a default and agreed to faster debt repayments, with monthly redemptions rising to one-tenth of the original principal from one-twenty-fifth.