January 26, 2023
💡 Celsius plans to issue debt tokens to solve financial problems
The AST token will reflect the value of the creditors' assets. It can be stored in order to receive some payments in the future, or sold on the secondary market. Tokens will be distributed only to the largest creditors, while small ones will be given liquid crypto assets such as BTC, ETH and USDT.
☝️ The plan must be approved by the regulators before it goes into effect. This practice has already been used in the crypto industry. So, Bitfinex, after being hacked in August 2016 and losing 120,000 BTC, issued BFX tokens, each of which represents the dollar value of the lost cryptocurrency, and distributed them among the victims.