Celsius may restructure and issue new token


The company’s plans must still be approved by courts and creditors.

Cover art/illustration via CryptoSlate

Bankrupt crypto lender Celsius could soon restructure and issue a cryptocurrency token to compensate users, according to a report from Bloomberg on Jan. 24.

During a court hearing, Celsius attorney Ross M. Kwasteniet said the company could be reorganized into a publicly-traded company with proper licensing. That approach could serve as an alternative to selling the company’s crypto assets — and could be more profitable for creditors given the currently poor crypto market conditions.

How To Get Free Crypto  

Celsius is also working to issue a new cryptocurrency token to compensate the company’s creditors, Kwasteniet said.

Certain creditors are reportedly asking Celsius to follow the lead of Bitfinex, which issued the UNUS SED LEO token in 2019 after losing access to a portion of its funds. Bitfinex committed to a buyback of the token to compensate users.

CoinFLEX, which went bankrupt shortly after Celsius’ own collapse, similarly issued a recovery token (rvUSD) last summer. That token was tied to the value of the U.S. dollar and offered 20% annual returns to users willing to hold the asset.

Celsius would need approval from a federal judge to issue a token. Furthermore, any restructuring plan would face a creditor vote.

More detailed reports from CoinDesk suggest that Celsius’ would name its new token the Asset Share Token (AST). The token would be issued to high-value creditors. Those creditors could then sell the tokens for immediate profit or hold the tokens to receive interest. Celsius’ remaining smaller investors, who make up about two-thirds of its base, would receive partial compensation in standard cryptocurrencies instead.

Coinbase Banner  

Celsius’ original token, CEL, is still in circulation but cannot be used as a reward token as intended because the company has halted its services. CEL’s value is down 77% over the past year. Bitcoin, by contrast, is down just 37% over one year.

Go to Source
Author: Mike Dalton

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.