Troubled Crypto Lender Celsius Seeks Time To Stabilize Liquidity (bloomberg.com) 66
Celsius Network will need more time to stabilize its liquidity and operations, the embattled crypto lending platform said in a blog post after it froze deposits last week. From a report: Celsius, one of the biggest crypto lenders, has been struggling to raise funds in a fragile digital-assets market hit by tightening interest rates, liquidity and the collapse of the Terra blockchain last month. "We want our community to know that our objective continues to be stabilizing our liquidity and operations," Celsius said in its blog on Monday. "This process will take time." The firm has also paused Twitter Spaces and Ask Me Anything, also known as AMAs, in crypto jargon "to focus on navigating these unprecedented challenges," Celsius said in the post.
"This process will take time" (Score:5, Funny)
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It takes time to get a visa to a non-extradition country.
In this case it might be easier to just get a fake identity and move to Madagascar. It is probably quicker... Speed counts!
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Well, it might cost a lot of the embezzled money, but at least you'll be in freedom... kinda.
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Well, not criminally illegal - maybe. There may be fraud charges that can stick.
But also to move to a place where you can't be legally reached from the civil lawsuits is required if you don't want to be mired in (expensive) lawsuits.
You may not need to run from criminal lawsuits, you probably have
When you cut off communications, you're done (Score:5, Insightful)
The firm has also paused Twitter Spaces and Ask Me Anything, also known as AMAs, in crypto jargon "to focus on navigating these unprecedented challenges,"
And by navigating they mean not answering the hordes of questions from users asking where their money is and why they can't get access to it.
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Real question is will time help them?
Last I looked (when I was reading the summary about 10min ago) BitCorn was still locked in its epic struggle to hold the $20k line and was currently under it again.
Celsius and others failing to redeem deposits on demand or implementing capital controls and withdraw limits certainly does not inspire investor confidence. Every hour people who want to sell but can't and are made to wait is a giant flashing sign screaming the rest of the population "don't invest in this garb
Can we finally get to the important bit? (Score:5, Funny)
Who cares about scammers and their victims. The question every geek in the world asks is: How long 'til GPUs get affordable?
Losing Faith (Score:1)
Good Luck! (Score:1)
As someone who has thousands of my hard-earned dollars sitting in Celsius
I hope you get some (or all) back, I like to think the best of people and Celsius freezing everything hopefully means they are figuring out how to get people back as much as possible.
Now I know why the FDIC exists.
Probably within a year or so you'll see that people protected by the FDIC are not faring any better than you. The FDIC does not have enough funds to cover everyone if a number of banks fail.
There are lots of people making fu
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Probably within a year or so you'll see that people protected by the FDIC are not faring any better than you. The FDIC does not have enough funds to cover everyone if a number of banks fail.
If it's liquidity problems, the Federal Reserve will help member banks ride it out as they have done in the past. Sometimes they even help foreign banks.
The difference between FDIC banks and Celsius is that it will be a cold day in Honolulu before the Federal Reserve will step in to help Celsius.
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I haven't heard anyone serious who thought that crypto was a decent stable investment vehicle. Many considered it a reasonable high risk gamble, but that's a very different kind of thing.
There's almost always a tradeoff between investment stability and investment return. Crypto threw stability out the window to get maximal return. And it did, but the fluctuations involved are so extreme that a lot of the values end up being below zero. (Like gambling on shorts in the stock market.)
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And does Celsius have paid their insurance fees to the FDIC? No? Well, then the FDIC will not help.
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As someone who has thousands of my hard-earned dollars sitting in Celsius (as do millions of others), I sure hope this gets worked out. Now I know why the FDIC exists.
Did you learn your lesson? Or will you still fall for the next crypto scam?
Only one way to tell I suppose.
You interested in this new crypto? It's called Fahrenheit.
Get in early enough and it comes with a free bridge.
Never try to.. (Score:3)
Never try to Stabilize Liquidity when you just Liquidized Stability.
Shut them down - seize the assets (Score:1)
I am sure they are hoping to receive a govâ(TM)t funded bailout and be considered âoetoo big to failâ like they did with all the other scam operations in 2008. Deny them - remove their license to do financial business, and seize all tangible assets that can be liquidated.
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Re: Shut them down - seize the assets (Score:1)
No license to do financial transactions? That should have been peoples first clue it is a scam⦠surely they have assets - those could be raided and confiscated⦠kinda like they do when a cop pulls over a suspected drug dealer and then the arresting agency goes after the persons home, cars, etcâ¦
I'm an American. (Score:5, Funny)
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Could someone please convert this to Fahrenheit so it makes sense?
If you had money deposited with these people then it's now worth '32'. F.
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It's something with an F for sure. But not sure if it's Funkyheit.
CryptoSpeak to English (Score:1)
English: "We're broke".
So stable! (Score:5, Informative)
Anyone want to pipe up again about how "paper fiat money" is inherently unstable and crypto will free us from the elites?
Meanwhile a literal joke token, not even taken seriously by the person who created it, jumps in "value" by 20% because one man said he was buying it and we're supposed to believe what these absolute shitheels have to say about finance or the economy when they cheer that type of thing on?
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Fiat is not 'inherently unstable' -- inherent implies permanence. Fiat is periodically unstable. Crypto OTOH is inherently unstable because there is literally nothing backing it (and before you say fiat is not backed by anything either, you're wrong. Stable fiat like USD is backed by the full faith of the US Government and productivity of the US).
No, much longer term (Score:1)
Look at some discrete events of instability that happen once every few years
No, look at what happens about every 200-300 years or so to any fiat currency.
What I gave you are just signs as to the end of the current long term cycle.
Fiat is not 'inherently unstable'
Well every example for thousands of years has been, but I'm sure this time is different!! *rolls eyes*
You really need to think long term instead of coin the moment.
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At various points gold was a currency,
But gold is not fiat and the value of gold has never gone to zero like every single fiat currency that ever has been, and ever will be.
There has been no stable currency in the world, ever.
Thanks, case closed then. Good luck, as whatever comes next is coming within a year or two now, maybe sooner. Hope you have managed to gather things of real value to help you weather the storm.
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1) Look at real inflation rates in U.S.
Inflation is a global phenomenon and central banks actually have methods to combat it, even if painful, thus the entire idea of moving to it from a gold standard
2) Look at currency collapse in Japan, well under way.
You are way overstating this, and it practically makes my case for me. The reason a weak Yen has been in the news is because it's been so long since that has happened and the BOJ has been traditionally very hands off. Japan hasn't even begun to really inte
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Makes a bunch of claims, doesnt back them up, points to youtube video as evidence of something (and doesnt even link it!) just immediately turns to ad homs. I never personally insulted you in my response good sir!
Never Go Full Retard (Score:1)
Your retard level: Legendary [twitter.com]
Just had to come back one more time to point out how absolutely and utterly lost you are, sorry could not resist - now you may have the last word.
Good luck, idiot.
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The value of fiat money is based on the government demanding it in order for you to continue to live/work in the are it controls. And it is a real value. It's not exactly stable, but it doesn't fluctuate the way crypto does. Crypto is closer to an unregulated stock market, but it's a bit more extreme in that direction.
OTOH, those who invest in actual (as in "they take possession of") valuable metals have a much less arbitrary value. Over the centuries it almost always increases in value. But it's subje
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The value of fiat money is based on the government demanding it
It's based on the demand of others, and that is in rapid decline now.
And it is a real value.
There is no real value, because it's based on nothing now and they constantly create more. More like the memory of value that takes time to fade.
it doesn't fluctuate the way crypto does.
Come back in a year and see if you can say that... the price of gas and the price of homes and rent already hint to it being every bit as volatile as crypto.
Crypto didn't
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Rising gas prices cause people to cut back on frivolous travel. Mortgage rates climbing from two percent to six percent cause people to hold off on buying ludicrously overpriced real estate. These market action increase stability rather than acting against it. Everything to do with cryptocurrencies is in contrast like skydiving without a parachute and hoping you land in a treetop.
Fiat currency is garbage (Score:1)
The US dollar has consistently lost value over time since becoming a fiat currency. According to this search result inflation calculator [usinflatio...ulator.com], the inflation since 1970 has been about 653%. I make 71% more than my dad did in 1996, and my buying power is **less** than his final pre-retirement paychecks.
The boom and bust cycles caused by fiat + fractional reserve banking since the 1970s have been worse than what we had before the loss o
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The idea that boom/bust is a result of fiat is not really founded, seems to be a result of capitalism in general, a simplification of the basic for Keynesian economics is accepting these states of recession and growth and to base monetary and tax policies around it. I am not syaing what we have now is perfect or doesnt cause problems but there certainly were plenty of banking, monetary and economic problems when we were on the gold standard but they tended to hit harder and last longer with relatively littl
Bitcoin's back down below $20k (Score:3)
Ponzi Scheme is revealed when people are burned (Score:1)
Looks like somebody just moved to billion USD (Score:2)
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My guess would be the big guys are preparing for the exchanges to collapse
They pretty much have already. They are just in the space between jumping out the window and hitting the pavement at the moment.
Everything is crypto (Score:1)
Gee...In 1929 (Score:2)
There was a run on the financial institutions. Many did not have sufficient capital to meet the withdrawal demand. Many failed taking the life savings of depositors with them.
Sound familiar?
As a result control were legislated (hated by the money people) ant the financial institutions stabilized. They whined and moaned for years until they conned Clinton and the congress into repealing most of them and yanking the teeth from the rest of the financial regulations and anti-trust laws.
Leading us to the love
My Celsius thermometer is always liquid (Score:2)
If not, it would be very cold indeed.
Let the bailouts begin (Score:1)
Bloomberg reported that the Sequoia Capital China-backed Babel Finance - the distressed crypto lender which we previously reported had frozen withdrawals on Friday amid the relentless cascade in selling - said it won a reprieve on debt repayments.
https://www.zerohedge.com/cryp... [zerohedge.com]
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After a weekend of carnage and premature obituaries, crypto markets are rising phoenix-like (for now), helped by news that BlockFi has been bailed out by crypto exchange FTX.
https://www.zerohedge.com/cryp... [zerohedge.com]
I seem to remember (Score:1)