OPNX explains why Celsius was prioritized over FTX, others for bankruptcy tokenization
According to Heimdall CEO Vishal Shah, Celsias was first selected for OPNX bankruptcy tokenization due to the company’s “completely unedited database.”
Heimdall and OPNX, providers of business tokenization solutions, have partnered on deploying bankruptcy tokenization products to provide liquidity access to users whose funds have been frozen on defunct platforms.
The product offers an alternative to lengthy bankruptcy management processes that can take years to resolve.
For example, eight years after Mt. Gox went bankrupt, creditors still haven’t received their payments. The situation is made even more frustrating by the continually changing repayment schedules.
On May 24, OPNX co-founders Mark Lam and Shah announced that Celsius users will be able to tokenize their bankruptcy claims immediately after May 29.
OPNX uses Celsius first
and update In announcing the announcement, Mr. Shah said Mr. Celcius’ claim was chosen first because the company’s information database was easily accessible.
Heimdall’s CEO said their aim is to introduce a technology layer to digitize the outdated bankruptcy process. But it needs data.
Of the many crypto bankruptcies that have occurred in 2022, the readily available data for Celsius happens to make dealing with the digitization process “very easy,” Shah said, adding: .
“Celsius has a completely unedited database, so it’s very easy to mine that information, parse it the way you want, and make sense of it to work towards seamless validation.”
In addition, Shah said that with about 600,000 creditors, 85% of whom are classified in the “convenience class,” Celsius is a “cooperative” option to tackle first, adding that small real estate I said no.
“It resonates with our spirit of trying to build something that will help those who are unjustly exposed.”
Under the Chapter 11 Bankruptcy Rules, convenience class Refers to a class of unsecured creditors who owe less than a court-determined threshold.
Designating different classes of creditors reduces the administrative burden of courts compared to treating all claims the same, whether large or small, secured or unsecured.