Celsius acknowledges $1.2B hole in balance sheet

Post by Peleus » Fri, Jul 15, 2022, 1:16 AM UTC

hapticmonkey wrote: post #123

Peleus wrote: post #75

Earlier quoted context omitted.

Then look at _why_ you don't have it in today's financial services. Is it because there is some technology lacking that only blockchain and cryptocurrencies can solve? No, it's because in the years of financial market experience, people realise the risks don't outweigh the rewards. Cryptocurrencies and block chain isn't solving a problem, it's just spruiking the pro's side of a pro's and con's decision.

Taking Bitcoin as an example...it's an open and free alternative to those private systems. Sure it has limitations, but the base network layer is there and functioning (with 100% uptime) for anyone to use without needing to ask for permission. That's the value.

Post by purerandomness » Fri, Jul 15, 2022, 1:16 AM UTC

colechristensen wrote: post #96

amluto wrote: post #39

Earlier quoted context omitted.

If banks distrust each other enough to want a blockchain to handle nightly settlements, then they are massively exposed to transaction rollback shenanigans. Interbank settlements can be very, very large, and I have trouble imagining, even in the wildest cryptocurrency fantasy land, that banks could arrange for all their different types of settlements to be on the same blockchain.

No problem having dozens of specific purpose blockchains. It’s just a ledger, it doesn’t matter at all how big the numbers are. It’s not real money just a record of balances. I’m not talking about a cryptocurrency, just a blockchain as a replacement for a database table, essentially a different api that ran distributed instead of on some ancient mainframe.

Post by wmf » Fri, Jul 15, 2022, 1:25 AM UTC

Nursie wrote: post #145

dcolkitt wrote: post #117

One thing to note is that while Celsius, a centralized and opaque yield platform, collapsed, not a single major DeFi protocol failed during a period of enormous stress. MakerDAO, Aave, Uniswap, Curve, Lido and Compound all had perfect 24/7 uptime with zero losses due to unrecoverable debt. This pretty clearly strengthens the case for pure and transparent DeFi, where anybody can inspect the health of the protocol or t…

> not a single major DeFi protocol failed during a period of enormous stress Was Terra/Luna/Anchor/Whatever not a DeFi protocol?

Post by junofan » Fri, Jul 15, 2022, 1:26 AM UTC

vkou wrote: post #132

dcolkitt wrote: post #117

One thing to note is that while Celsius, a centralized and opaque yield platform, collapsed, not a single major DeFi protocol failed during a period of enormous stress. MakerDAO, Aave, Uniswap, Curve, Lido and Compound all had perfect 24/7 uptime with zero losses due to unrecoverable debt. This pretty clearly strengthens the case for pure and transparent DeFi, where anybody can inspect the health of the protocol or t…

Celsius seems to have been either a ponzi scheme, or a group of morons doing dumb speculative investment on margin, or (most likely) both, but I'd like to point out that MakerDAO is down 70% YTD, Aave is down 60%, Uniswap is down 60%, etc, etc. You'd have been better off just buying bitcoin on margin (Since BTC is only down 53% YTD). The point of this post is that you can't make something out of nothing. None of thes…

Post by im_down_w_otp » Fri, Jul 15, 2022, 1:28 AM UTC

josh2600 wrote: post #74

civilized wrote: post #66

Earlier quoted context omitted.

Currently paused due to "extreme market conditions". What conditions exactly? BTC is down from all-time high, but still worth about twice as much as it was only two years ago. Ethereum is worth over 4x as much. Is a two-year average appreciation rate of 40-100% per year so witheringly horrible that the Celsius business model couldn't survive it? Did crypto have to basically 2x every year without fail for Celsius to s…

Celsius told their customers they were accruing Bitcoin and then Celsius didn’t buy the Bitcoin to deposit into their accounts, instead using the money to buy their CEL token that their ceo was dumping on exchange. Their business model was fine. What wasn’t fine was not following it. Abra, Nexo, Gemini, and lots of other companies are business as usual with the same model right now.