Celsius to Create Tradable Wrapped Tokens
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- Celsius customers can redeem packaged tokens for a certain amount.
- In July, Celsius filed for Chapter 11 bankruptcy protection.
A new record has emerged as Celsius founder Nuke Goldstein discusses a plan to use crypto-based solutions to repay Earn customers and recover the company’s assets.
Celsius consumer and YouTuber Tiffany Fong revealed a leaked audio clip of an internal meeting that shows Celsius is considering another way to pay back customers. Celsius co-founder and CTO Nuke Goldstein says the company represents the relationship between how much we really owe and how much we really have by wrapping what customers owe Bitcoin, Ether and USDC.
Celsius customers can redeem packaged tokens with a certain ratio. Alternatively, they can hold their Cx tokens on the Celsius platform and wait for higher profits as revenues from the company’s bitcoin mining operations and other potentially profitable opportunities in the broader crypto market begin to flow.
Packaged tokens can also be exchanged on Uniswap
Celsius customers would also be able to trade wrapped tokens on decentralized exchanges like Uniswap, where market forces would determine their value. In July, a month after withdrawals were halted due to a lack of liquidity due to extreme market conditions, Celsius filed for Chapter 11 bankruptcy protection. The severity of Celsius’s financial difficulties was demonstrated by subsequent bankruptcy proceedings in Southern New York; The lender owes 500,000 creditors nearly $5 billion.
The strategy is similarly reminiscent of Bitfinex’s recovery strategy after a hack that resulted in the loss of 120,000 bitcoins (BTC) from the exchange’s reserves in mid-2016. Hacked customers were given exchange-traded promissory notes, which were later traded on the open market, often for significantly less than the face value of $1. By April 2017, Bitfinex had acquired all outstanding notes.
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