Celsius relies on the future with a new plan called Kelvin
Celsius relies on the future with a new plan called Kelvin
- At a meeting of everyone involved on September 8
- The Federal Trade Commission wants to join the case, as court files show
Celsius triggered a wave of concern about liquidity problems in the area of crypto loans after the company was unable to pay liabilities of $ 5.5 billion due to the needy loans.
The lender now puts together a renovation plan to repay and regain customers, according to a September 8th and was divided by Celsius users tiffany fong .
At the meeting, CEO Alex Mashinsky and Chief Compliance Officer Oren Blonstein sketched a plan for "Celsius 2.0" - a goal of moving the focus on the custody. To do this, some important services would have to be reactivated so that users can use funds kept, exchange and resume loans, while they are calculated for certain transactions.
The plan bears the code name "Kelvin", a temperature unit that takes Absolute zero-corresponds to minus 273 degrees Celsius - as a lower limit. Blonstein decided to describe it as a concept in which "absolute zero confidence is involved".
Both managers met with skepticism among employees who asked how customers Celsius would trust after they were first informed that they would not be charged for paying their money.
Celsius previously advertised its products as such as part of the mottos of the lender "Unlank Yourself".
Blonstein Binance used as an answer as an example to say that several crypto companies achieve income from the collection of a transaction fee for transactions.
"If we serve valuable services, people should be ready to pay for it," he said.
Regardless of this, Mashinsky pointed out that bankrupt companies have the potential to recover aggressively after a successful reorganization.
"Pepsi has registered two bankruptcy, right? Does the pepsi taste less good?" he said. "Delta has registered bankruptcy, correct? Don't you fly with Delta because you have registered bankruptcy?
Mashinsky described the application for protection according to Chapter 11 as a "a test to determine whether they should exist", and added: "Or will we end up in the garbage can of companies that were great or almost great or great for a while, but disappear?"
The New York Times first reported the news.
creditors are incredulously
The resuscitation plan is initially only a proposal. The Unsecened Creditors' Committee (UCC) from Celsius would have to exist before it can be brought to court for approval. According to reports, the UCC had concerns about the Kelvin proposal after being met with executives.
Simon Dixon, founder of the Bank to the future and Celsius-Belinner, called for his claim to support of UCC and skeptically commented on every plan with Mashinsky at the top.
I stand behind every plan that makes the creditors healthy, so I listen to all the plans. Have @Mashinsky is a magnet for regulatory closure and financial disaster for all believers IMO. I will remain open -minded, but in my opinion, ignoring this reality is not the way to recovery. https://t.co/majbsbcln0
- Simon Dixon (Caution Imitator) (@simondixontwitt) 14. September 2022
The bankruptcy application from Celsius in July was a lesson in relation to the risks of high -interest lending for investors. Since several creditors still have to get their funds back, the lender is working on monetizing their Bitcoin mining business to support the company.
Celsius did not answer the request from Blockworks for comment until the editorial deadline.
Since the bankruptcy lenders aims to weaken the heat, the case has aroused the interest of lawyers of the Federal Trade Commission, the stored in court to represent the government authority on Tuesday.
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The contribution Celsius relies on the future with a new plan called "Kelvin" is not a financial advice.