Storj’s Chapter 11 filing recalibrates the value proposition for $STORJ tokenholders. The token-to-equity conversion proposal creates a binary outcome: if court-approved, tokens become equity claims in the reorganized entity; if rejected, they may be impaired to near zero. Market pricing will initially assume rejection, driving sell pressure. But the asymmetry is notable: downside is capped at zero, upside depends on successful conversion. This isn’t typical chapter 11 where creditors take priority, here, tokenholders have a novel path to preserve value, subject to legal hurdles. Flows to watch: forced liquidations from institutional holders that can’t hold distressed assets, and speculative accumulation by distressed-debt players treating the conversion as an arbitrage. On-chain movement toward the debtor’s wallet may signal conversion expectations. The real trade is navigating the legal timeline. Until the disclosure statement is approved, STORJ will trade on news noise with wide spreads. Focus on confirmation hearing dates as catalysts for volatility.