FTX Back In To Pounce On Celsius
In today's edition of YIYL (You Invest, You Lose) we head back to the dumpster fire that is Celsius, its been around 7 months now since withdrawals have shut down and clients of Celsius wait to get access to their money, there are active bankruptcy proceedings and every moron who took out a loan or looked for interest with this clown show are tied to the fate of this sinking chip.
The CEO recently resigned, while his wife has gotten a lot of flack for trying to make money in bad taste with merchandise, and their vocal attitude on social media to me only seems like they are doing more harm than good. I would have rather shut up, and let the lawyers and PR agencies handle communication. While Alex has stepped down as CEO this is only a vanity move as he still remains in control of the company.
It was an olive branch to give the bankrupt clients something as they were calling for him to step down.
The longer this goes on the cheaper Celsius becomes
It's been months and Celsius clients are no closer to getting their funds, we've only heard promise after promise, the company claim they are restructuring, paying down debt, streamlining operations, and also have a bitcoin mining operation that brings them income, but it doesn't look like these are paths towards patching the hole in their balance sheet.
Celsius previously had contact with offers from both FTX and Bnktothefuture to bail them out but nothing came out of it, assuming Alex thought he could salvage it without outside capital or he didn't like the terms offered.
I think that the longer this goes on, the less bargaining power Celsius has and the creditors and customers looking to secure something are going to keep pressuring them to take a deal.
Its a buyer's market
FTX looks like it has the cash to burn and is keen to expand its dominance in the market, after winning an auction to acquire the assets of now-defunct crypto brokerage firm Voyager Digital Ltd., the U.S. arm of FTX Trading Ltd. Voyager said that it had accepted the exchange's $1.4 billion offer to acquire the insolvent company.
Now FTX is reportedly considering bidding for the assets of bankrupt cryptocurrency lending platforms. This time they're heading back to provider Celsius Network LLC for a deal. A few months ago, FTX offered to buy them out but walked away due to the $2 billion dollar hole in their balance sheet and opted to bail out BlockFi instead.
With so much bleeding going on Sam Bankman-Fried is licking his lips and taking his time as he gathers assets at rock-bottom prices, claiming that there is still cash to buy if the opportunity arises.
Pouncing on the pompous
It just shows how many businesses came in, got cocky, and overleveraged themselves, and now they're looking to Sam to pick up the pieces and save the faces of retail investors who trusted these platforms. Sam is ruthless and while retail might be saved by his actions, he is probably clearing out equity holders of these companies.
If FTX does buy Celsius it might be good news for investors who used their service and they might get access to their funds sooner rather than later, or never as is the likelihood considering Celsius's situation today.
Sources:
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase
| Earn Free bitcoin & shop | Earn Free Bitcoin & shop | Claim Free Bitcoin & Shop |
|---|---|---|
 |  |  |
Posted Using LeoFinance Beta
I, like many others, have my coins and tokens stuck on Celsius too. I'm watching this ongoing bankruptcy saga with fascination and horror. I remain hopeful, but the current turn of events with FTX getting involved doesn't bode very well, in my opinion…
It could be your lucky day if he buys them out and allows for redemptions, that would be the best case for customers, who will likly not take their money out in any case because they;ll fall for another yield product so the amount of capital they need to meet redemptions might be far less
Worst case you get gox'd, either way it's a good lesson in not trusting others with your money, especially someone with zero track record in finance
💯👍
Maybe FTX is interested in the user base of Celsius and gets more traffic toward their central trading exchange.
Pretty sure that's the game plan, bail them out and then get them to rek themselves on their own terms