“"I didn't hear no bell" - Rocky Balboa”- Celsius
Remember the character 'Celsius Lannister', from Game Of Thrones?
You might think you do - but you don't.
(Because we just made that name up).
But just like the fictional Lannister family - the very real crypto lending platform, Celsius, always repays their debts.
They've just paid down a handful of loans and recovered almost $1B worth of their original collateral.
If you're wondering what we're on about, here's a recap of the events that led us here:
The crypto markets crashed.
Celsius realized they'd overextended themselves - they couldn't service their debts AND pay out their customers.
Celsius froze all customer accounts, hoping to pay down their debts and recoup their down payments, before letting customers access their funds again.
Grim. Bad. Not promising. Everyone expected them to go under. Not a good look for the crypto space.
Throughout May and June, they came dangerously close to losing their collateral, multiple times.
Yesterday, they pull a rabbit out of the hat and recoup $1B in down payments.
It's still unclear whether these recovered funds will be enough to cover their obligations to their clients (as of this writing, all Celsius client accounts are still frozen).
And many are unconvinced it'll be enough - two days ago, Vermont’s financial regulator labeled Celsius “deeply insolvent."
Here's why the (potential) Celsius recovery is important:
We wrote about it just yesterday - the crypto space is in dire need of certainty.
Whether it comes from prolonged price stability in the market, or one of the many lending platforms coming back from the brink of death - anything will do.
Will it fix the market? Oh, absolutely not.
But it's a start.
