Faced with the sharp decline in AXION's revenues for several years Mr. DUPONT is trying to consider radical actions to avoid a cash flow crisis. During a lunch with a friend from his college years, Mr. DUPONT became an enthusiast of non-fungible tokens ("NFT" or "tokens") through his discussions with him. An NFT, or "non-fungible token", is a unique digital token that certifies to its holder the ownership of a digital asset (collectible, video game item, digital artwork, etc.) or physical asset (artwork, real estate and many others).
Shortly thereafter Mr. DUPONT learned that the UEFA Champions League announced the launch of its own non-fungible tokens, featuring the world's best soccer players. The tokens were developed by TOPPS, which has become an official partner of the tournament. As a result, fans will be able to acquire unique moments recorded in videos and images and recorded on the blockchain. The NFTs consist of iconic videos of the great moments of the competition from 1992 to today. Mr. DUPONT immediately believed that he had found the solution to his company's cash flow problems: AXION SPORT would become an investor in sports NFTs, either to acquire an asset that could be used as collateral for potential commercial credits or to cash in on the profits from the resale of the NFTs and thus replenish the cash flow.
Mr. DUPONT therefore began speculating on the tokens marketed by TOPPS for the UEFA Champions League in the belief that if AXION acquired a sufficiently large position in the number of tokens marketed, it could realize huge profits from the certain growth in demand. Mr. DUPONT instructed a proxy broker to make the necessary investments to obtain the targeted position.
Faced with the initial price surge when the tokens were put on the market, Mr. Dupont had to practically empty the company's coffers in order to obtain his dominant position.
Unfortunately, despite a period of initial growth in the price of the tokens following the frenzy of soccer fans, after three months the average price of the tokens dropped by about 80%. In the meantime, at AXION's general meeting, shareholders learned that the company's president had lost almost all of his reserves in financial speculation.
A management committee was appointed by the shareholders to find a way out of the cash crisis.
The members of the committee have appointed you as their advisor and ask you if the purchases of digital tokens ordered by the president of the company Mr. DUPONT could be cancelled and if the company could thus recover the funds paid out?

Answer rating: 100% (QA)

In this situation whether AXION can recover the funds paid out for the digit... View the full answer