Mika
VIP Contributor
Celsius Network is a so-called crypto bank that has filed for bankruptcy in a US court. The reason for the bankruptcy has been given as the drop in BTC price as they used BTC as collateral to pay interest on the deposits from the users.
According to recent news, Celsius Network is considering tokenizing its debt into IOU Tokens. The proposal was presented in an internal meeting at the Celsius Network office and the news was leaked online. It is reported that they are discussing the possibility of wrapping bitcoin, ethereum and USDC owed by customers into token. Customers would then have an option to redeem or trade on exchanges or keep holding in a hope that the price of tokens will go high. It is estimated the Celsius Network has a debt of $1.2 billion. The platform is said to have 300k customers with more than $100 deposited in the platform.
According to recent news, Celsius Network is considering tokenizing its debt into IOU Tokens. The proposal was presented in an internal meeting at the Celsius Network office and the news was leaked online. It is reported that they are discussing the possibility of wrapping bitcoin, ethereum and USDC owed by customers into token. Customers would then have an option to redeem or trade on exchanges or keep holding in a hope that the price of tokens will go high. It is estimated the Celsius Network has a debt of $1.2 billion. The platform is said to have 300k customers with more than $100 deposited in the platform.
