Celsius warned stabilizing the network ill take time after the lead investors proposed a recovery plan so let’s read more about it in today’s latest cryptocurrency news.
Crypto lender Celsius warned that stabilizing the liquidity and the operations will take longer. The platform delivered an update on the situation and stated that its objective continues to be stabilizing the liquidity and the operations of the network. The New Jersey-based company added the process will take time and said they are maintaining an open dialogue with regulators and officials and are seeking to find a resolution.
The company added that it is pausing its Twitter Spaces and the Reddit AMA session so it can focus on navigating these unprecedented challenges and seeks to fulfill its responsibilities to the community. Celsius abruptly canceled the scheduled Reddit AMA session with the CEO Alex Mashinsky appearing in a video on YouTube with a similar message. In a move that made shockwaves on the market, Celsius froze withdrawals and swaps last Sunday due to extreme market conditions.
I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation https://t.co/FyF1Qaw6ZE
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 19, 2022
The decision played a huge part in the decline of the broader market with the price of BTC tanking below $18,000. BTC is up by 4.4% and it is trading back above $20,000. Celsius lead investor BnkToTheFuture offered to assist the company by deploying a financial innovation similar to the one used to save the Bitfinex exchange after the 2016 BTC hack. It also represents an investment platform that allows investors to invest in financial tech companies, funds, or other financial products, and back in 2020, it launched an equity offering that raised $20.46 million through more than 1000 investors.
BnkTothefuture CEO Simon Dixon wrote:
“I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later.”
BitFinex turned to UNUS SED LEO Token to raise $1 million and sold the token in exchange for Tether and replaced the $850 million that the exchange lost to the Panama-based bank Crypto Capital. According to Dixon, this was resolved in 9 months and worked out well for the depositors. Dixon added that he wouldn’t disclose more details on the recovery plan before Alex and Celsius are ready, adding that it is his position to offer solutions with the experience they have and the technology to do so:
“Our industry has come back stronger from every disaster and now is the time for us to offer support in a bottom-up way in compliance with the regulations we have always followed.”
Dixon’s offer came hot on the heels of the reports that the Canadian Pension Fund CDPQ and New York’s WestCap Group are unlikely to come to the rescue of the crypto lender.
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