Celsius’s Revival Proposal Includes Issuance Of Wrapped Assets

As Celsius management further detailed the executives’ proposal to return funds to customers, including the issuance of new wrapped assets for trading on other platforms.

A newly leaked audio recording of Celsius management, another note from Celsius management shows the company’s proposal includes the release of tradable wrapped assets to customers. The Block reported on this issue.

In the recording provided by Tiffany Fong, the Celsius customer and public figure charged with sharing the earlier leaked all-hands meeting recording, the company’s co-founder and CTO Nuke Goldstein appears to provide a more thorough description of the firm’s proposal to reimburse Earn consumers.

The plan is to distribute wrapped tokens, known as Cx tokens, to symbolize the ratio of how much the company owes to how much it has available by first putting Celsius’ remaining cash designated for client repayment into wallets. Customers that are holding onto their bitcoin will, for instance, receive CxBTC tokens.

Customers can either redeem their wrapped tokens now or postpone redemption until when more money comes in. Incoming mining, ETH earnings from staked bets, and other coins that might become liquid were mentioned by Goldstein.

“So the more you wait, there’s a better chance that the gap will be closed,(…). However, you can always redeem.”

He said on the recording

In addition to the redemption mechanism, Goldstein says Celsius plans to enable trading for the wrapped tokens on other venues. Users could withdraw their tokens and go to Uniswap or other platforms and allow the market to price the tokens, he said. 

Fong said she obtained this recording on Sept. 1, prior to receiving the leaked all-hands meeting recording. Because of the time lag, Fong noted that Celsius’ plans could have changed in the days since she received the file.

As was updated in a previous Coincu News article, September 8, CEO Alex Mashinsky circulated, in which he detailed his plan to revive the company, codenamed Kelvin, at a corporate meeting. However, this proposal was not accepted by the community as well as questioned by their own staff.

However, the debt committee has yet to make a public decision on the proposal. Celsius will have to present any proposals to the court and be approved before proceeding.

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