Celsius Network’s Recovery Strategy Involves Issuing Wrapped Tokens

Celsius Network’s Recovery Strategy Involves Issuing Wrapped Tokens

• Wrapped assets may be part of Celsius’s strategy for a comeback.
• The goal is to represent the ratio of how much the firm owes to how much it possesses.
• Before pursuing the plan, Celsius must first submit it to the court for review and approval.

An audio clip of Celsius‘ leadership that was leaked recently to the public discusses the strategic plan to repay customers, which includes the release of additional wrapped assets for trading on other platforms.

The aim is to issue wrapped tokens, also known as Cx tokens, to reflect the ratio of how much the business owes to how much it has available by first placing Celsius’ remaining currency that is earmarked for customer payback into wallets.

This will be done in order to prepare for the distribution of Cx tokens, which will represent the ratio of the amount the company is owing to how much it has available. For example, customers that save their bitcoins will be rewarded with CxBTC tokens.

In the tape that was released by Tiffany Fong, the Celsius customer and public figure who is credited with releasing the previous recording of a leaked all-hands meeting, the company’s co-founder and CTO, Nuke Goldstein, appears to provide a more in-depth explanation of the company’s proposal to repay Earn customers.

In the tape, Goldstein said: “So the more you wait, there’s a better chance that the gap will be closed. However, you can always redeem.”

Fong pointed out that Celsius’ aims may have changed in the days after she got the information, which is significant considering the delay. However, Celsius must first present any plan they have to the court and get permission before acting on it.

Last week, Celsius filed for Chapter 11 bankruptcy and was attempting to sell its stablecoin reserves. Celsius’s management said in a request to the United States Bankruptcy Court Southern District Of New York that the firm has stablecoins valued at about $23 million across its US, UK, and EU branches.

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