The strategy to compensate clients, which involves releasing new wrapped assets to trade on other platforms, is further described in a freshly leaked recording of Celsius Network’s leadership.
In the recording provided by Tiffany Fong, the Celsius customer and public figure charged with sharing the earlier leaked all-hands meeting recording, the company’s co-founder and CTO Nuke Goldstein appears to provide a more thorough explanation of the company’s proposal to compensate Earn customers.
Celsius plans to distribute wrapped tokens
The plan is to distribute wrapped tokens, known as Cx tokens, to symbolize the ratio of how much the company owes to how much it has available by first putting Celsius Network’s remaining funds designated for client repayment into wallets. Customers that are holding onto their bitcoin will, for instance, receive CxBTC tokens.
Customers can either redeem their wrapped tokens now or postpone refund until when more funding comes in. Incoming mining revenue, ETH staked revenue, and other coins that might become liquid were mentioned by Goldstein. Goldstein stated in the recording:
“So the more you wait, there’s a better chance that the gap will be closed. However, you can always redeem.”
According to CTO, Celsius intends to allow trading for the wrapped tokens in other marketplaces in addition to the redemption method. According to him, users might take their tokens out of Uniswap or other platforms and let the market determine the tokens’ valuation.
Prior to getting the recording of the leaked all-hands meeting, according to Fong, she received this recording on September 1. Fong highlighted that given the lag, Celsius’ goals might have been modified in the days since she received the material.
Customers wanting to receive their possessions back from Celsius have been following the bankruptcy case since it began Chapter 11 procedures in July of this year. In a recording from a firm all-hands meeting two weeks ago, CEO Alex Mashinsky discussed a strategy to resurrect the business code-named Kelvin.
As per the recent developments in the bankruptcy proceedings, the court is planning to bring an independent examiner to probe the company.