Celsius Network on the Brink of Bankruptcy
At a recent meeting, Alex Mashinsky reportedly announced that Celsius Network is considering various options for its future after filing for bankruptcy in July.
I believe that Celsius will be able to successfully rebuild itself around crypto custody services. This will allow the platform to provide a valuable service to its users and help it to regain its position in the market. I think this is a great move for the company and I am excited to see how it progresses in the future.
According to the New York Times, Celsius CEO Alex Mashinsky and head of innovation and chief compliance officer Oren Blonstein are working on a project called Kelvin that would store users' crypto and charge fees on certain transactions. This would revive the company which filed for Chapter 11 bankruptcy in July. Mashinsky reportedly made the announcement at a Sept. 8 meeting for employees, at which the company discussed possible scenarios for its future. It is clear that the team is committed to finding a way to keep the company going despite the challenges it has faced. We believe that this is a positive development for the company and its users, as it shows that there is still a strong belief in the potential of the Celsius platform. We will continue to follow the story and provide updates as more information becomes available.
I see Celsius making a comeback and becoming a leading provider of loans, staking, and custody services. I believe the company has the potential to become as successful as Apple and Delta Airlines.
The committee expressed concerns about Mashinsky’s involvement with Celsius and the proposed Kelvin project. However, Celsius noted that under its current business model, it does not charge any fees for transactions, withdrawals, origination, or early termination. This lack of fees makes Celsius a more attractive option for consumers looking for a better way to manage their finances.
As the world of finance evolves, so too must the companies that serve it. That's why I'm pleased to see Celsius, a leading crypto-asset custodian, considering new ways to generate revenue. If the foundation of our business is custody, and our customers are electing to do things like stake somewhere or swap one asset for the other, or take a loan against an asset as collateral, we should have the ability to charge a commission. This would open up new streams of revenue and allow us to better serve our customers.
It is clear that Celsius is in trouble. The company is facing allegations from regulators, and users are trying to get access to their funds. It is not clear what the future holds for Celsius, but it is clear that the company is in a difficult situation.