How does paripassu work in the context of cryptocurrency investments?

3 answers

• Mar 08, 2022 · 3 years ago
  Paripassu is a concept in the cryptocurrency investment world that refers to the equal ranking of multiple creditors in case of liquidation or bankruptcy. It ensures that all creditors are treated equally and receive an equal share of the available assets. This can provide a fair and transparent process for investors and reduce the risk of preferential treatment. However, one drawback is that it may result in lower overall recovery for creditors compared to other ranking systems.
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• Mar 08, 2022 · 3 years ago
  Paripassu in the context of cryptocurrency investments means that all creditors have an equal claim on the assets in case of liquidation. This ensures that no creditor has priority over others and promotes fairness. However, it also means that the recovery for each creditor may be lower compared to a system where certain creditors have priority. It's important for investors to understand the implications of paripassu when considering cryptocurrency investments.
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• Mar 08, 2022 · 3 years ago
  Paripassu is a term commonly used in the cryptocurrency investment industry to describe the equal treatment of creditors in the event of liquidation or bankruptcy. In other words, all creditors have an equal claim on the assets and are treated equally. This can provide a level playing field for investors and prevent any preferential treatment. However, it may also result in a lower recovery for creditors compared to systems where certain creditors have priority. It's crucial for investors to consider the potential benefits and drawbacks of paripassu before making any investment decisions.
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