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Bank To The Future Founder Shares Insights On Crypto Claim Pricing

Published 04/11/2023, 10:51 AM
Updated 04/11/2023, 11:00 AM
Bank To The Future Founder Shares Insights On Crypto Claim Pricing

  • Bank To The Future founder highlights cryptocurrency claim pricing and credit protection for debtors.
  • FTX, Celsius, Voyager, BlockFi, Genesis, and 3AC offer varying percentage bids for Chapter 11 claims.
  • Genesis Global charges the highest among contenders, demanding 50% to 55% for claims worth $5+ million.

Bank To The Future founder Simon Dixon posted a tweet highlighting the cryptocurrency claim pricing and credit protection for debtors in the market at present. “This is what a Chapter 11 claim exchange sent me asking if I want to invest in any of the Chapter 11 claims.,” says the finance expert.

Dixon’s tweet has revealed the interest of sophisticated investors in Chapter 11 claims. The tweet includes a screenshot of a claim exchange request, offering investment opportunities in claims related to various companies, such as Celsius, Voyager, FTX, BlockFi, Genesis, and 3AC.

For context, Chapter 11 is a bankruptcy filing that allows companies to reorganize their debts while still operating. Creditors can file claims for the money they’re owed by the bankrupt company.

According to the image shared by Dixon, FTX Trading Ltd. asks for 25% to 28% for claims over $5 million. Meanwhile claims within $1 million to $5 million bid for 20% to 25%, and claims under $1 million ask for 18% to 21%.

Similarly, Celsius Network asks for 22% to 26% and 20% to 24% for claims over $5 million and within $1 million to $5 million, respectively. Claims under $1 million, go for bids around 20% to 24%.

Voyager Digital Holdings ask for 20% to 25% for claims over $5 million. Moreover, Voyager charges 20% to 24% for claims ranging from $5 million to $1 million, while asking for 20% to 25% when it comes to claims below $1 million.

In comparison, BlockFi Inc.’s asks are more reserved. For instance, it asks 15% to 18% for claims above $5 million, within $5 million $1 million, and under $1 million.

3AC Loans are also in the same boat with a consistent bid of 7% to 9% for all three aforementioned categories.

However, Genesis Global charges the highest among its contenders demanding 50% to 55% for claims worth $5+ million. Additionally, claims within $1 million and $5 million get charged a bid between 45% to 50%.

The post Bank To The Future Founder Shares Insights On Crypto Claim Pricing appeared first on Coin Edition.

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