Celsius Announces Plan to Issue a New Token to Reimburse Creditors
Insolvent crypto lending platform Celeius, announced today that it will be repaying its creditors by issuing a new token.
The move is targeted at properly reimbursing creditors affected by the crash and likewise emerging from bankruptcy.
New Token Issuance
During a court hearing, Ross M Kwasteniet started putting Celsius back into its previous state as a publicly traded and license company will get creditors reimbursement payment on time than any other means involving selling assets.
She also added that any proposal put forward will be voted upon by creditors who invested on the platform.
The decision to issue a new token is a bold move, and one that is sure to stir some reactions. However, Celsius believes that it is the most effective way to reimburse creditors in a transparent and credible manner.
Alex Mashinsky CEO of Celsius stated he believes this is the best way possible to make the repayment possible as transparent as possible.
According to Kwasteniet, following the firm’s liquidity crisis that took place in 2022, the company moved to file for bankruptcy. During the period the Celsius firm also sought out investors to offer to buy its assets.
However, the bids placed for the assets backed then were not appealing enough.
In following months, Celsius team had round table discussions with creditors and investors on the premise of starting out a new firm and distributing newly issued tokens to creditors as a reimbursement plan.
On this current decision, Kwastiniet stated that more documents with the specifics on this new token issuance plan will be forwarded to the court.
The Effect on the Crypto Industry
The move by Celsius is a clear indication of the growing nature of crypto firms. It shows that firms are not committed to fulfilling their obligations to creditors seriously and are also willing to explore transparent and credible ways to repay debt.
It also demonstrates the flexibility and adaptability of blockchain technology, which can be used for a wide range of financial applications.
Celsius’s decision is also expected to have a positive impact on the wider crypto market. The issuance of a new token is likely to attract interest from a wide range of investors.
This, in turn, could lead to increased demand for other cryptocurrencies and could help to further stabilize the market.
This new step also highlights the potential of blockchain technology to revolutionize the way we think about and manage debt.
Investors and the wider crypto community will be closely monitoring the progress of the Repayment Token and the impact it has on the market.
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