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Celsius acknowledges $1.2B hole in balance sheet

coindesk.com

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Re: Celsius acknowledges $1.2B hole in balance sheet

#331

Post by TrapLord_Rhodo »

SilasX wrote: post #328
TrapLord_Rhodo wrote: post #290

Earlier quoted context omitted.

I've been shorting it. The markets don't have to make sense right away, but eventually they do. There's alot of corruption involved first. The old mantra of the market can stay irratiional longer than you can stay solvent is true only if you make a big bet. Make small bets that you believe in. For instance, shorting LUNA's stable coin once it slightly deppegged was a smart financial decision. Since it could only 'reP…

And again I ask, why is this a reply to my comment? What was it addressing that I said?

Long drawn out explanation on why i agree with you the it makes no sense that CEL has a large market cap and i'm shorting it lol.

Re: Celsius acknowledges $1.2B hole in balance sheet

#332

Post by andirk »

trixie_ wrote: post #228
Nursie wrote: post #227

Earlier quoted context omitted.

Cryptocurrency does not seem to fall into the category of "assets resistant to manipulation". In fact it seems to be very, very prone to manipulation by all sorts of parties.

It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins. Not selling massive quantities of newly minted coins. The government on the other and has minted and spent trillions of dollars in stimulus which has resulted in permanent inflation. The point is, Bitcoin will bounce back, the dollar will not.

Most of the money minted and spent goes to dropping bombs on brown people and guarding Arab oil investments. And while the average American got a small check, giant companies got massive interest free loans. Again.

Re: Celsius acknowledges $1.2B hole in balance sheet

#333

Post by everfree »

TrapLord_Rhodo wrote: post #330
everfree wrote: post #120

Earlier quoted context omitted.

No. The CEL tokens are not securities, and do not represent any debt or equity. CEL holders are not entitled to any claim on Celsius' assets. The CEL token's sole purpose was as a tool to offer users promotional rates (and maybe for a bit of insider pump-and-dumping).

that's not true. They claim the CEL Token as an asset. It should be a 5.3B hole.

I don't understand how that contradicts what I said. CEL token holders are not entitled to any of Celsius' assets, like shareholders or bondholders would be.

That's a separate issue from Celsius owing their depositors CEL as a debt. Those CEL creditors are entitled to Celsius' assets through the bankruptcy process, if Celsius cannot otherwise make good on that CEL-denominated debt.

Re: Celsius acknowledges $1.2B hole in balance sheet

#334

Post by TimJRobinson »

tsimionescu wrote: post #329
whatisweb3 wrote: post #316

Earlier quoted context omitted.

I am not sure any of this is accurate since you can directly on-ramp to L2s and also purchase L1 and L2 assets off-chain. An L2 like zk-rollup - assuming the protocol is implemented correctly - has same security guarantees as Ethereum since the validity proof is posted to L1. Most of them include an escape hatch, a L1 function that lets users withdraw funds in a permissionless way. Ethereum can certainly theoreticall…

To be fair, I've only really looked at Lightning Network in the L2 space, and you can't on-board directly on LN while controlling your own keys. Also, not sure what the point about off-chain assets is. I can buy cheese off-chain, even denominated in BTC maybe, but that doesn't mean I'm using BTC or LN when giving the seller 10,000 sat worth of cash. > An L2 like zk-rollup - assuming the protocol is implemented correc…

Yea the lightning network is terrible technology and Bitcoin maximalists proclaiming it's the future are doing a disservice to the whole industry.

It is only state channels - peer to peer links, and then making it work requires clients to figure out routes over those links themselves, which won't scale beyond a few million users.

Ethereum L2s are their own network and usually EVM compatible so work exactly the same as Ethereum. They use the same wallet, tooling etc. Then every N minutes they post a proof of what happened + compressed transactions needed to reproduce what happened to Ethereum L1. It's easiest to think of them like zipping a bunch of transactions to post them to Ethereum. Currently they are about 10x as performant as Ethereum so cost 1/10th as much while still being fully secured by Ethereum. They are still super new only coming out less than a year ago.

Optimism and Arbitrum are the biggest and currently they only have one sequencer which orders the transactions and posts batches to L1. Because there is only one sequencer transactions are basically instant and then are secured by Ethereum when the next batch of transactions is posted to it. Most of the major exchanges let you and ETH or stablecoins directly onto Optimism and Arbitrum.

Zk-rollups are next gen tech where they post a zk proof of what happened to the layer 1 + compressed transaction data. They are more efficient than current L2s and more secure. The biggest ones coming soon are zkSync, Starknet, and Scroll.

You can see all the L2s at https://l2beat.com and their current tps at https://ethtps.info

Once Ethereum has data shards and nodes mostly store large blobs of L2 transaction data + check proofs instead of running all transactions this will be 100x - 1000x more efficient than today.

Re: Celsius acknowledges $1.2B hole in balance sheet

#335

Post by nradov »

whatisweb3 wrote: post #317
nradov wrote: post #270

Earlier quoted context omitted.

But the problem is that it's not real currency and you can't do anything useful with it beyond trying to trade it to a bigger idiot.

Some people want USDC, some people want non fungible assets, some people want ETH, some people want an ERC20 that backs an idea or organization. DeFi let’s these users manage these assets without placing them in the hands of a single actor. Saying nobody wants ETH or USDC is like saying nobody wants AMZN or AAPL shares. What you really mean is that you are not interested in those assets.

Those are not "assets" in any meaningful sense. You're just making things up.

Re: Celsius acknowledges $1.2B hole in balance sheet

#336

Post by whatisweb3 »

nradov wrote: post #335
whatisweb3 wrote: post #317

Earlier quoted context omitted.

Some people want USDC, some people want non fungible assets, some people want ETH, some people want an ERC20 that backs an idea or organization. DeFi let’s these users manage these assets without placing them in the hands of a single actor. Saying nobody wants ETH or USDC is like saying nobody wants AMZN or AAPL shares. What you really mean is that you are not interested in those assets.

Those are not "assets" in any meaningful sense. You're just making things up.

ETH or USDC are as much “assets” as stocks, gold, bonds, property, domain names. Humans and social consensus made all of this up.

Re: Celsius acknowledges $1.2B hole in balance sheet

#337

Post by bitxbitxbitcoin »

remram wrote: post #295
bitxbitxbitcoin wrote: post #283

Earlier quoted context omitted.

What you're missing is: 1) newer generations of bitcoin mining hardware are orders of magnitude more efficient so 3% of hardware isn't 3% of total SHA 256 computational capacity 2) 3% of hardware owned by miners is probably a GPU number. Eth is mined by GPUs, not ASICs. Hope this helps!

So you're saying there's not that much mining power that could "switch over" to Bitcoin or ETH, because hardware is optimized for a specific network and would lose significant efficiency if switched to a different network? That makes sense to me thanks!

Exactly. If it even ran at all.

Re: Celsius acknowledges $1.2B hole in balance sheet

#338

Post by StanislavPetrov »

FabHK wrote: post #251
StanislavPetrov wrote: post #140

Earlier quoted context omitted.

>2. Transferring money internationally as groundbreaking uses for crypto? Seriously? You are confusing, "groundbreaking" with, "useful and convenient". It is much cheaper, faster and easier to send small international payments via crypto than it is via any legacy financial service - this is beyond dispute.

> It is much cheaper, faster and easier to send small international payments via crypto than it is via any legacy financial service - this is beyond dispute. Let me dispute it then. Try Wise (formerly Transferwise). It is cheap, fast, and easy. FWIW, I know many people working abroad (from expats to domestic helpers), and none of them use crypto for remittances, as far as I know.

>Let me dispute it then. Try Wise (formerly Transferwise). It is cheap, fast, and easy.

Just checked it out, sending $5 costs at least 13% (they receive $4.33) and doesn't transfer until tomorrow. Some currencies cost far more. Sending $5 to my friend in Brazil would cost a whopping 28% (they receive $3.54). Some currencies don't allow you to send $5, but have minimums that are higher.

Sending $5 of litecoin costs me about .75% (they receive $4.96) and takes anywhere from 10 to 30 minutes.

And although I haven't tried the service, I'm sure they block payments to people and organizations frowned upon by the banking system and the US government. Would my payment to Wikileaks go through? Or the Julian Assange defense fund? I find it highly unlikely.

Finally, individuals like myself who in the past played online poker are blocked from using transfer services like Moneygram and Western Union for engaging in blacklisted behavior. Why would I struggle to enter the walled garden when it is cheaper, faster and easier to use crypto?

>FWIW, I know many people working abroad (from expats to domestic helpers), and none of them use crypto for remittances, as far as I know.

I know dozens of people who work here in New York who use crypto for remittances. In fact, although I don't use it, there is a nearby laundromat with a bitcoin machine that is almost entirely frequented by migrants from South and Central America. Search for "bitcoin machine" in the NY metro area and you will find a huge number of them are located in landromats and bodegas frequented by immigrants who use these machines to send and receive funds.

Re: Celsius acknowledges $1.2B hole in balance sheet

#339

Post by jboy55 »

m348e912 wrote: post #115
jboy55 wrote: post #91

Earlier quoted context omitted.

I doubt you could invent a better way to launder all that ransomware cyrpto than inventing NFTs.

How does that work? Does I transfer a bunch of "ill gotten" ethereum to someone who agreed to buy my 5k goofy ape NFT for 1 million bucks and now I've made 995k that I can pay taxes on and use as laundered money? There's still a transaction chain of eth so it wouldn't be impossible to figure out what I just tried to do.

You start a ransomware group, you take the country of Belize for a million in etherium. You also start a NFT collective, you post a bunch of pictures you have for sale. In a fit of 'we're gonna blow this money', the ransomware group, which is you, buys a bunch of NFTs from a few NFT sellers, including the NFT group you setup. The group posts the JPGs on their twitter to show what they "wasted" their money on for lols.

Can the country of Belize claw back their money? It depends where you live, where your NFT collective lives, and the treaties between the countries. If you chose your countries correctly to ransomware. If Eth is fungible currency, then you can claim that just because the 'money' someone stole ended up with you, for a legitimate sale, its not a 'stolen good'.

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