And yet the site apparently continues to accept deposits:
Business as usual. Oh yeah, check out our hello bar for that minor detail that withdrawal, swap, and transfers are "currently paused."
These guys are going to prison.
Celsius acknowledges $1.2B hole in balance sheet
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Re: Celsius acknowledges $1.2B hole in balance sheet
#42This is covered in today’s Crypto Critics’ Corner podcast: https://youtu.be/m6xkCDP1z2s
Re: Celsius acknowledges $1.2B hole in balance sheet
#43Earlier quoted context omitted.
Still waiting to see even one single useful use case for cryptocurrency and block-chain storage. It's all a grift to take money away from stupid retail investors trying to get rich quick.
IPFS has some cool use-cases, like anti-censorship webhosting. I'm with you on waiting to see actual money use cases that crypto is better at than real dollars/credit cards. It's not even good for money laundering since the blockchain leaves a very public trail that lasts forever.
> It's not even good for money laundering since the blockchain leaves a very public trail that lasts forever.
Not necessarily. There are cryptocurrencies that get around this by using ZKP to obscure senders, receivers, and amounts.
Re: Celsius acknowledges $1.2B hole in balance sheet
#44Earlier quoted context omitted.
Interbank nightly balance settlements between large institutions. A distributed cryptographic ledger would be great for this kind of thing. A private “coin” between mostly trusted partners with provisions for reversing transactions as needed. Useful because it would have lower administration overhead than one bank maintaining a service for exchanging funds, no concerns about downtime, and all sorts of guarantees abou…
Do banks not presently trust each other? edit: Suggesting that the interbank system move to crypto on a thread about a massive failed crypto project is a huge failure on reading the room. It's like trying to convince people to buy Titanic II tickets at the funeral for the Titanic I victims or trying to sell a Model 38 to Jacqueline Kennedy on November 23, 1963.
People significantly underestimate how much cost there is at certain points in the chain.
Interbank transfers are very cheap. A lot of central banks have invested heavily in payments systems too (the BoE is one, Faster is very good). But at certain other points, this technology could be very valuable. Two examples that occur to me immediately are pensions and fund administration.
Obviously, Ethereum goes beyond that with a more generalized VM. From what I have seen, this is a ludicrously inefficient way to perform computations. If that is wrong, then maybe there is more. But just blockchain alone will have a huge impact (if you look at back/middle-offices in banks/fund managers/pensions/insurance, I remember working in this area and going to one of the largest pension admins in my country...I remember vividly opening the door to the pig pen, and it was just a sea of people, 95% just responding to very basic customer queries/doing incredibly basic computation work and costing huge amounts of money...because, of course, there is no cost pressure from "customers"...a parallel that more people understand is US healthcare admin, huge inefficiencies, pension admin is like that).
We are not even at day one with this trend. I am sure people will find other applications after, but applying blockchain/distributed storage/distributed computing/whatever to back/middle office in finance will be huge. It also isn't really a question about whether it is going to happen...it will.
Re: Celsius acknowledges $1.2B hole in balance sheet
#45If I read it correctly it's more like a 1.8 bn hole. They are counting 600m of their own token, which already had only 170m or whatever of market cap, which presumably now is absolutely worthless. I don't mean worthless in a conceptual sense like all crypto, but this specific brand of made up money is based on the trust of a bankrupt lender. Nobody is buying that and counting it as 600m of asset is absurd. It's like…
For reasons I don’t claim to understand, their token is still trading at about a third of where it was three months ago: https://coinmarketcap.com/currencies/celsius/
Terra classic is still trading... at $0.00009 https://coinmarketcap.com/currencies/terra-luna/ It had a big jump when Terra 2.0 was launched. (That coin is, inexplicably, still trading in the $2 range, by people who are looking to add a lot of excitement to their life.)
Re: Celsius acknowledges $1.2B hole in balance sheet
#46And yet the site apparently continues to accept deposits: https://celsius.network Business as usual. Oh yeah, check out our hello bar for that minor detail that withdrawal, swap, and transfers are "currently paused." These guys are going to prison.
People were still buying hertz stock even though they were going through bankruptcy. They even tried to do secondary offering. Retail investors don’t operate with enough information to make financially sound decisions.
Re: Celsius acknowledges $1.2B hole in balance sheet
#47Scam, after scam, after scam, after scam...
Still waiting to see even one single useful use case for cryptocurrency and block-chain storage. It's all a grift to take money away from stupid retail investors trying to get rich quick.
I used to pay to run a few TOR exit nodes located in Iceland that I didn't want tied to me because I didn't want the hassle. It was marginally easier to use bitcoin than it was to get a prepaid credit cards with cash each time.
That's about it though.
Re: Celsius acknowledges $1.2B hole in balance sheet
#48Re: Celsius acknowledges $1.2B hole in balance sheet
#49What's sad is that some pension funds have exposure to Celcius. Imagine teaching for decades only to find your retirement pension is reduced because the manager thought it was a good idea to put your money into a ponzi scheme
I am not sympathetic to teachers or pension funds whatsoever. Teachers should take control of their investments like everyone else: either invest it yourself or make your pension managers invest it properly. Pension funds do all sorts of stupid things: they played a role in 2008, they invest in big oil and other anti-ESG stocks, and now this. They're huge pools of poorly governed funds, it's inevitable that they get abused.
Re: Celsius acknowledges $1.2B hole in balance sheet
#50Earlier quoted context omitted.
Interbank nightly balance settlements between large institutions. A distributed cryptographic ledger would be great for this kind of thing. A private “coin” between mostly trusted partners with provisions for reversing transactions as needed. Useful because it would have lower administration overhead than one bank maintaining a service for exchanging funds, no concerns about downtime, and all sorts of guarantees abou…
If its bank transfers between trusted entities why do you need blockchain?
This is called the ACH network and there's no way to trace, undue, or recall transactions. It has been used in bank robberies [1] and numerous financial institutions and payment processors who are not banks use it, not all of whom are trustworthy.
[1] https://www.kaspersky.com/about/press-releases/2015_the-grea...