Insolvent cryptocurrency lender Celsius may issue a new token to pay back its creditors, as reported by Bloomberg. Upon the company’s restructuring plan, the new proposal is aimed at raising fund and repay customers and creditors.
According to Celsius attorney Ross M. Kwasteniet, the company can be restructured as a properly licensed and publicly-traded company and repay debts to creditors by the issuance of new tokens. Instead of selling off assets to clear debts, this payout plan will protect assets.
Named Asset Share Token (AST), the new token is for creditors with at least a $5,000 loan.
An Interesting Idea
A number of creditors also suggested Celsius to follow Bitfinex’s repayment plan. The crypto exchange was under severe attack in 2016 with loss of 120000 BTC. To repay customers, Bitfinex issued a token UNUS SED LEO and the platform completed the payout in 2017.
CoinFLEX, a crypto exchange in close connection with Celsius,…
