Faucet closed – Celsius figure in the list of crypto companies victims (and responsible?) of the collapse of the price of Bitcoin (BTC). The cryptocurrency lending platform has fallen into a ravine, and apparently can’t count on its friends from yesterday to get out of it.
Celsius and its investors: love is no longer in lending
An article from the Wall Street Journal gives some encouraging news for Celsius and its users.
The company’s main investors would be, according to the media, ” unlikely to give her some extra help. Companies participating in the $400 million funding round in October 2021 would now stand aside.
These investors included the Caisse de depot et placement du Quebec and the investment fund West of a former Airbnb executive.
Celsius will therefore not be able to count on fresh capital from its former partners to solve its problems.
The platform has for the moment chosen to freeze its withdrawals, exchanges and transfers in the face of bear markets.
But of course she can’t not maintain such a measure indefinitely its criminal users. Regulators in several US states have already opened an investigation against the company following this freeze.
In this context, the CEO of Celsius, Alex Mashinsky, unsurprisingly holds reassuring speeches. But concretely, Celsius is in the process of look into its restructuring.
In this context, he called on specialized lawyers. The company has also sought support from Citigroup bank in an attempt to get back on its feet.
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From an IPO to the endless wait for a life-saving rebound
how about celsius arrived at this catastrophic situation ? However, the company still seemed to be preparing an IPO in May 2022.
However, the bear markets have disrupted the development plans of the cryptocurrency lending platform. And by freezing his withdrawals to face the bear marketCelsius only didadd more jerks to markets and cascading liquidations.
With such a measure, he indeed gained as the price of Bitcoin fell to around $20,000. And the price of Bitcoin falling below this level probably does not help the business of the company.
Celsius can now only hope for a strong rebound which would bring the Bitcoin price back to $30,000. But before seeing such a bullish recovery, he must also expect a possible fall to 12,000 $.
Will close, won’t close? With the crypto winter still likely to last and Bitcoin below $20,000, the cryptosphere will most likely see other crypto players fall, even the most prestigious. Recent announcements from Celsius confirm the delicate situation in which the crypto platform finds itself.
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