- Asset Distribution Options (USDT, In-Kind, or Hybrid Models)
- What does “Rebalancing” mean here?
- Example
Rebalancing Pros & Cons
- 👍 Pros / Benefits
- Receiving crypto assets in-kind at a predictable ratio (e.g., if CG states a 25% recovery rate, you'll receive 0.25 BTC for every 1 BTC held)
- Fewer tax implications for creditors (compared to payouts in stablecoins)
- If BTC/ETH prices continue to rise, creditors will receive more BTC/ETH in-kind than they could purchase with the equivalent dollarized value later
- 🚫 Cons / Risks
- More complicated, additional time and money spent by CG
- Another 3rd party provider employed by CG to do the conversion
- If BTC/ETH prices will fall before distribution, rebalancing will result in creditors effectively getting less BTC/ETH in-kind (than what they’d be able to buy after they get back dollarized value)