crypto strategy

Celsius CEO Mashinsky offers to resurrect the platform as a digital asset custodial company

The saga that has been the downfall of Celsius this year has been well documented. CEO Alex Mashinsky has been at the center of crypto criticism after pledging to “take over” Celsius’ crypto strategy in the 11th hour before the platform’s pseudo-shutdown.

That’s not slowing down a persistent Mashinsky, who, despite a slew of bankruptcy proceedings, continues to drag himself into the forecast. a kind future for Celsius. This week, Mashinsky is looking to reposition Celsius as a digital asset custodial company, according to a new report from the New York Times.

What led to today’s “Doom & Gloom” in degrees Celsius

About a year ago, state regulators in a handful of US states began turning their attention to yield-generating platforms such as BlockFi and Celsius. Celsius, for a while, offered aggressive pricing for holding tokens on the platform. At its peak last year, Celsius held tens of billions in funds and sometimes promised double-digit percentage returns that accrued every week.

Coming into 2022, the market was poor but definitely not in “bearish mode” when Mashinsky and company rolled out their initial “custody solution”. A few months later, following the collapse of Terra Luna, it was revealed that the platform was exposed to DeFi protocols, including Terra’s peg protocol, and was experiencing strong headwinds due to more aggressive market conditions. It was during this time that Mashinsky began to deepen his position in corporate strategy. By July, the company had frozen user funds and filed for bankruptcy.

Celsius (CEL) token has seen a volatile short-term performance. | Source: CEL-USD on TradingView.com

The pivot: can it work?

According to the Times report, last week Mashinsky proposed a project called “Kelvin”, in which Celsius merely provides custody services and collects fees from depositors. According to the report, Celsius employees were rightly skeptical. Mashinsky hit back at internal skeptics, according to the Times, citing some of the biggest corporate turnarounds, telling employees, “Delta has filed for bankruptcy. Don’t you fly with Delta because they filed for bankruptcy? »

The short jab is that Celsius’ credibility is just as bankrupt as its balance sheet. Take a look at Celsius’ Twitter replies for a great example. While Delta and Pepsi recovered from bankruptcy, they did so at different times, and more importantly: neither was indebted to massive amounts of customer wealth. The branding and identity behind the business is probably a ship too far.

Featured image from Pixabay, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

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