Bankruptcy of crypto exchanges: A solution to recover your assets!

Contagion, ruin of investors, loss of credibility of trading platforms, falling asset prices… The list is still long as to the consequences of the collapse of a cryptocurrency exchange. The case of FTX taught us a lot on the subject. But as the fledgling crypto-asset industry struggles to recover from its downfall, some players are offering remedies for some of these woes. Thus, thanks to a solution offered by Cherokee Acquisition, crypto investors will no longer have to fear the permanent loss of their assets held by exchanges such as Binance, Kraken or Coinbase.

“Put Options”, a vaccine against crypto exchange bankruptcies?

The FTX Storm caused around $3 billion in losses to its major creditors, and more than $40 billion belonging to all of its crypto investors. In December 2022, the ousted boss of this American crypto exchange spoke of a project to reimburse victims. But until now, no concretization on behalf of the new administration.

Who knows if the victims’ situation will improve if the judge grants SBF access to FTX’s accounts.

Far from being insensitive to this kind of misfortune, the investment company focused on the bankruptcies Cherokee Acquisition launches “Put Options” (or “Options de Vente”). According to CoinDeskthis solution will allow cryptocurrency investors to “ protect their funds on the Binance, Coinbase and Kraken crypto exchanges in the event of bankruptcy “.

100% refund

Cherokee Acquisitions’ “put options” are able to protect crypto investors in the event of bankruptcy filings by platforms placed under the protection of bankruptcy law. To do this :

  • institutional investors and hedge funds will sell options to compensate individuals;
  • the latter will have to pay monthly fees that can range from 0.25 to 0.55% depending on the crypto exchange to which they are attached.

Regarding these prices, you will find details in the image below.

Cherokee put option prices.
Cherokee put prices

This new offering from Cherokee comes at just the right time. After the bankruptcies of FTX, Terra, Celsius Network, Voyager Digital and BlockFi, many fear for the security of their digital assets on centralized crypto exchanges. So, they started making withdrawals in waves to the point of creating a FUD vibe.

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