© Reuters
Investing.com – Ever since cryptocurrency lender Celsius froze withdrawals in June, client funds have been on hold. To get out of this crisis, the company would like to issue an “IOU” cryptocurrency to customers who have subscribed to some of its accounts.
This plan would be in the “early stages” and could change in the following weeks. Nuke Goldstein, co-founder of Celsius, reportedly described a compensation plan for clients who deposited assets into the Celsius “Earn” account, for which Celsius promised returns of up to 17%.
Nuke Goldstein reportedly said Celsius will issue “wrapped tokens”, which will serve as an IOU for customers. The tokens represent the ratio of what Celsius owes customers to the assets they have. According to him, if customers wait to redeem their tokens, there is a greater chance that the gap between what Celsius has and what it owes will be smaller.
According to Goldstein, the value is likely to rise because Celsius has revenue from its mining business, staked ETH, and other coins that can become liquid.
He clarified that the tokens can be redeemed on Celsius for probably less value than what is owed to them or on crypto platforms like , which allows the market to determine the value of the tokens.
Reimbursement isn’t the only plan Celsius has in the works. The company reportedly also built a transaction management system, which is designed to track the company’s blockchain assets. This would include the assets, the price at which they were bought and how much they were worth when they were sold.
″…[L]Transparency is not only reflected in the way we communicate, but also in ensuring that everything that is done within our platform is traceable, auditable, end-to-end – we have nothing to hide”.