BnkToTheFuture proposes 3 methods to solve Celsius Network’s liquidity issues

BnkToTheFuture, one of the major investors in the Celsius Network, has submitted three suggestions to help solve the company’s liquidity problems and save them from bankruptcy.

#DepositorsFirst Celsius recovery plan https://t.co/YkGy3N0Gwd

— Simon Dixon (Beware of spoofing) (@ SimonDixonTwitt) June 30, 2022

Simon Dixon, CEO of BnkToTheFuture, shared his suggestions on Twitter. Suggestions include restarting or rebuilding the platform, or getting an investment in Bitcoin whales.

The suggestions are:

• Proposal # 1: Restructuring to resume Celsius and allow depositors to benefit from financial engineering recovery.
• Proposal # 2: Bitcoin’s most influential whale pool for co-investing with the community.
• Proposal # 3: Operational planning allows new entities and teams to rebuild and create entire depositors.

If either proposal is adopted, it will refund the depositor and help maintain the value of the shareholders.

As we’ve seen in Mt. Gox in the past, I don’t think traditional finance has a timely solution in Celsius that hasn’t been resolved in 10 years.I think this can only be solved with a solution that utilizes financial innovation. https://t.co/FyF1Qaw6ZE

— Simon Dixon (Beware of spoofing) (@ SimonDixonTwitt) June 19, 2022

Recovery plans come a few weeks after Dixon Mentioned He said traditional solutions may not be the way to go for Celsius and advised that he should look for something similar to the issuance of equity debt, such as Bitfinex in 2016.

According to Dixon, BnkToTheFuture will convene a shareholders’ meeting to discuss the proposal.

Since BnkToTheFuture Capital SPC holds more than 5% of Celsius’s shares, this allows it to convene a shareholders’ meeting as part of the rights of statutory shareholders, which the board of directors of Celsius cannot legally ignore. you can’t.

BnkToTheFuture appears to put pressure on Celsius by publicly disclosing the proposal after the Board of Directors and its advisors did not act on the basis of previous communication between them.

Dixon Said:

The longer you go, the more FUDs you get, the worse your PR, and the more predatory offers you get, so the community doesn’t believe what you originally believed.

Withdrawals have been frozen since June 13, threatening bankruptcy, and many depositors are worried about losing their assets.

Celsius breaks silence

Celsius said he is working to stabilize the liquidity issue and will soon share more information with the community.

Celsius continued to look for options and take steps to “preserve and protect assets.” Some of the options include restructuring debt, strategic transactions, and more.

It added it:

These thorough investigations are complex and time consuming, but we want the community to know that our team works with experts from different disciplines.