Celsius Can Undergo Changes And Launch New Tokens

Key Points:

  • Bankrupt bitcoin lender Celsius may soon restructure and issue a cryptocurrency token to pay users.
  • Celsius is also preparing to launch a brand-new cryptocurrency token as payment to the business’s creditors.
  • Some creditors are urging Celsius to follow Bitfinex’s example and create the UNUS SED LEO coin, which it did in 2019 after losing access to some of its cash
According to a report from Bloomberg on January 24, bankrupt bitcoin lender Celsius may soon restructure and issue a cryptocurrency token to pay users.

Ross M. Kwasteniet, an attorney for Celsius, said at a court proceeding that the business might be restructured into a publicly traded company with the right licensing. Given the present unfavorable crypto market conditions, such strategy might be a better option for creditors than selling the company’s crypto assets.

According to Kwasteniet, Cel is also preparing to launch a brand-new cryptocurrency token as payment to the business’s creditors.

According to reports, some creditors are urging Celsius to follow Bitfinex’s example and create the UNUS SED LEO coin, which it did in 2019 after losing access to some of its cash. In order to give users compensation, Bitfinex promised to buy back the token.

Similar to Celsius, CoinFLEX, which failed immediately after its own collapse, also released a recovery token (rvUSD) last summer. Users who were prepared to hold the asset received 20% yearly profits on the token, which was pegged to the value of the US dollar.

To issue a token, Cel would require a federal judge’s consent. Any reorganization plan would also be put to a vote by creditors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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