> Imagine a SaaS company which takes out a loan for $100k to acquire customers and has $10k in bank at any time. That company is insolvent. I don't think that

> Imagine a SaaS company which takes out a loan for $100k to acquire customers and has $10k in bank at any time. That company is insolvent. I don't think that is right. Yes, they have more in liabilities than assets but insolvency would mean that you can't service your currently due debt. If you took out a loan with a $5000/mo payment, you would not be insolvent until you cannot make that payment. In the case of an exchange, that liability doesn't have a future due date - so they would be insolvent once they do not have the assets to cover their liabilities.