Celsius Network co-founder and CTO Nuke Goldstein has laid out a potential plan for the bankrupt crypto lending platform to repay their existing debt to the platform’s customers.
In an audio leaked by a YouTuber on September 21, the Celsius co-founder is heard confidently laying out details of a plan to wrap the debt left remaining from the difference between the company’s assets and what is owed to customers, in cryptocurrency tokens which would be called “claims tokens”.
Details Of The Plan Revealed By Nuke Goldstein
In the first part of the audio recording Mr. Goldstein can be heard sharing an important detail of the total plan, which is for the failed lender to consolidate its cryptocurrency assets to four specific digital assets which he names. The CTO specifies a plan to consolidate down to holding only Bitcoin, Ethereum, USDC and CEL, although CEL was presented as questionable by a further explanation.
Bitcoin mining and Ethereum staking were mentioned as potential drivers which could encourage holders of the “IOU token” to hold as opposed to trade for other digital currencies. It was expressed that the market projections on the future value of Celsius could present favorable scenarios for token holders, which could prompt some to HODL.
Additional References To IOU Token Plan Offer Further Confirmation
The plan which was heard on the leaked audio shared by Tiffany Fong on Wednesday was also referenced in a separate leaked audio on September 13, from an All Hands Meeting that was held on September 8. In the audio Celsius executives can be heard telling employees that Celsius CEO Alex Mashinsky had previously revealed the plan to the unsecured creditors committee (UCC) who they said gave “positive feedback” in response to the plan.
If the plan is accepted by the UCC it wouldn’t exactly be the first time that a strategy like this was approved to be used in order to repay public debts. Just earlier this month Chinese-based mining pool operator Poolin suspended withdrawals made through its wallet application. In the following week a plan was announced to issue IOU tokens which would represent a 1-to-1 ratio of affected customers’ balances across six different cryptocurrencies. After suffering a hack of historic magnitude in 2016, crypto exchange Botfinex issued debt tokens as part of the remedy, and was able to buy back all tokens within about a year from issuing.
Could The IOU Token Plan Work?
The considerable volatility associated with cryptocurrencies and trade in the crypto market, make it clear that digital coins and tokens could rise or fall in value at any point of time. It was revealed in previous blockchain news that the Celsius network has a subsidiary which presently still actively mines Bitcoin, and holds nodes in the new upgraded Ethereum staking scheme, amongst other active profit mechanisms.
The existing investment strategies currently managed by Celsius suggest there could be at least some hope that the implementation of plans like those laid out in the leaked audios could very well assist the platform in successfully repaying its debt. Even beyond the successful satisfaction of all total existing debt, perhaps Celsius could even be open for business in some capacity, at some point in the future again.
