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Started By
Message
re: Another Crypto network imploding (Celsius)
Posted on 6/17/22 at 7:00 am to FnTigers
Posted on 6/17/22 at 7:00 am to FnTigers
WALL STREET JOURNAL LINKED -
The thing about the wild west is there are no rules—and there’s no one to complain to when you get robbed. Crypto investors are finding that out the hard way. This week, another crypto service —Celsius—appears to be melting down. At one point it oversaw over $12 billion in funds for nearly two million users, advertising that users could withdraw and trade whenever they wanted. Now? They are stopping users from making any withdrawals or transfers.
Celsius calls itself a lending platform.
Round these parts we usually call em’ banks.
But as we’re now reminded: Celsius doesn’t have the investor oversight and legal protections that banks do.
As the WSJ put it: “Individual investors might not have realized when they put money in Celsius that they were giving the company an unsecured loan with little legal protection.”
LINK
The thing about the wild west is there are no rules—and there’s no one to complain to when you get robbed. Crypto investors are finding that out the hard way. This week, another crypto service —Celsius—appears to be melting down. At one point it oversaw over $12 billion in funds for nearly two million users, advertising that users could withdraw and trade whenever they wanted. Now? They are stopping users from making any withdrawals or transfers.
Celsius calls itself a lending platform.
Round these parts we usually call em’ banks.
But as we’re now reminded: Celsius doesn’t have the investor oversight and legal protections that banks do.
As the WSJ put it: “Individual investors might not have realized when they put money in Celsius that they were giving the company an unsecured loan with little legal protection.”
LINK
This post was edited on 6/17/22 at 7:08 am
1
Posted on 6/17/22 at 7:10 am to Eurocat
If any other exchange survives this, is it safe to assume they are good? Voyager,FTX, and etc.
Posted on 6/17/22 at 10:05 am to 21JumpStreet
Not in my opinion.
Posted on 6/17/22 at 10:22 am to 21JumpStreet
I think you are confusing the lending platforms for the broader exchanges. I wouldn't call Celsius an exchange, just like I wouldn't call Blockfi, Nexo, Voyager an exchange. The lending platforms have much more exposure to this contagion than the big exchanges. However, we have no clue how bad it is until all the dominos fall. There is zero reason what so ever to risk your funds on one of these lending platforms for <10% yield ever again in the future. Just not worth it to squeak out a few dollars when something like this can happen.
Posted on 6/17/22 at 10:27 am to TigerTatorTots
Oh I moved everything off now because of celsius. But I would think voyager and ftx would be considered an exchange that offer yields like coinbase.
Blockfi,nexo, and celsius, yea probably considered more of a lending platform.
Blockfi,nexo, and celsius, yea probably considered more of a lending platform.
Posted on 6/17/22 at 12:01 pm to 21JumpStreet
Babel pausing withdrawals
No idea how big they are....are these outliers? Or just warning signs?
I, like everyone, thought you could expect guaranteed rates of return in the 20% range in an unregulated "defi" market with zero risk.
You just hate to see it.
No idea how big they are....are these outliers? Or just warning signs?
I, like everyone, thought you could expect guaranteed rates of return in the 20% range in an unregulated "defi" market with zero risk.
You just hate to see it.
Posted on 6/17/22 at 12:04 pm to Grievous Angel
Stolen from reddit. You guys need to subscribe to /r/buttcoin. If you enjoy reveling in other people's misery. Especially the bros falling for all of this.
=========
Greetings "investors" of ___________________________ ,
We heard about the unfortunate series of events (people cashing out without more people cashing in) which led to your heavy loss of value. We are really sorry to hear that.
A __________ that offered ______% returns for doing nothing more than HODL'ing sure did sound like a win-win situation.
Especially after that celebrity/influencer ____________ endorsed it.
Obviously, nobody anticipated that something with a market cap of ________ run by people mainly known by their Twitter handles, previously involved in the business of ____________ would suddenly fail at an elaborate financial scheme.
Hopefully you can explain to your ___________ and _____________ where their money went.
We offer our thoughts and prayers that your account will be unlocked soon, and that proposed plans for "version ___" of the new crypto project might help you recover some of your losses.
In the meantime, like you, we will be anxiously following the tweets of Crypto_____ FUDMASTER______ and LamboGenie42_________ for more news on this situation.
We also recognize your newfound enthusiasm for central authorities such as the Securities and Exchange Commission to take an interest in this project and help you recover your funds. Let's hope they quickly move to rectify the situation, and then immediately remove themselves from further oversight once things return to "normal."
SFYL.
Sincerely, r/Buttcoin
=========
Greetings "investors" of ___________________________ ,
We heard about the unfortunate series of events (people cashing out without more people cashing in) which led to your heavy loss of value. We are really sorry to hear that.
A __________ that offered ______% returns for doing nothing more than HODL'ing sure did sound like a win-win situation.
Especially after that celebrity/influencer ____________ endorsed it.
Obviously, nobody anticipated that something with a market cap of ________ run by people mainly known by their Twitter handles, previously involved in the business of ____________ would suddenly fail at an elaborate financial scheme.
Hopefully you can explain to your ___________ and _____________ where their money went.
We offer our thoughts and prayers that your account will be unlocked soon, and that proposed plans for "version ___" of the new crypto project might help you recover some of your losses.
In the meantime, like you, we will be anxiously following the tweets of Crypto_____ FUDMASTER______ and LamboGenie42_________ for more news on this situation.
We also recognize your newfound enthusiasm for central authorities such as the Securities and Exchange Commission to take an interest in this project and help you recover your funds. Let's hope they quickly move to rectify the situation, and then immediately remove themselves from further oversight once things return to "normal."
SFYL.
Sincerely, r/Buttcoin
This post was edited on 6/17/22 at 12:06 pm
Posted on 6/17/22 at 12:12 pm to Grievous Angel
Never heard of Babel before. However, I'd say there is definitely major contagion behind the scenes going on that we will all see rear its ugly head over the next few weeks/months
Posted on 6/17/22 at 12:37 pm to iAmBatman
Yeah I quoted another thread where we got to talking and I basically said something to the effect of “I hope you get out” before it crashes
Not looking good, unfortunately with his silence. Hope he’s alright
Not looking good, unfortunately with his silence. Hope he’s alright
Posted on 6/17/22 at 1:12 pm to Grievous Angel
quote:
Babel pausing withdrawals
No idea how big they are..
"Less than a month ago, Babel Finance received a valuation of $2 billion following an $80 million Series B fundraising round.In a statement accompanying the news, the firm billed itself as the “world’s leading wholesale crypto financial services provider.”
At the end of 2021, the firm had outstanding loans totalling $3 billion and was seeing $800 million in monthly trading volume in derivatives–financial contracts based on the value of an underlying asset. It had also structured and traded over $20 billion in option products by that point."
Posted on 6/17/22 at 1:27 pm to TigerintheNO
quote:
Babel is considered one of the biggest lenders in crypto and acts as a link between Asia and the west. Reportedly, Genesis Capital, Bitgo, Blockchain.com, Bitcoin.com are among the firm’s better-known clients.
Its business model appears to be no different from most crypto lending firms—it’s essentially a middleman between borrowers and lenders. It claims to have been profitable since day one.
But what they might have been doing, could have been illegal
quote:
Babel Finance, one of China’s biggest crypto lenders and asset managers is coming under fire for allegedly misusing investor and client funds.
Anonymous critics have been leaking to the media and posting to Twitter and YouTube an alleged recording of Del Wang, Babel’s co-founder, in which he apparently admits that the firm has been taking risky, highly leveraged positions with client’s and investors’ funds, without their consent, before and after the March crypto crash.
The X plan
quote:
Typically, miners collateralize their BTC with Babel in return for stablecoin or fiat at a Loan-to-Value (LTV) ratio of 50%-65% with an annualized rate of return between 8% and15%.
How does Babel get these stablecoins?.....
"Using what money?" an unidentified person asks.
"Using client savings...We called this the ‘X Plan,’ " replied Del Wang.
Posted on 6/17/22 at 1:44 pm to Fat Bastard
quote:
there was a poster here who swore by this shite.
Probably the same guy that called Warren Buffet and Charlie Munger morons because they trashed cryptocurrency. WTF do a few nonagenarian billionaire investors know about 21st Century technology or the intrinsic value of an investment, right?
Posted on 6/17/22 at 2:22 pm to LSU82BILL
quote:
Probably the same guy that called Warren Buffet and Charlie Munger morons because they trashed cryptocurrency. WTF do a few nonagenarian billionaire investors know about 21st Century technology or the intrinsic value of an investment, right?
Bill Gates recently reiterated he views it as 100% "Greater fool Theory"
The old billionaire investors know money, and Bill Gates knows the tech...
I have a technical background (comp sci, dev career) and am interested in the technology. And the part of me that enjoys watching SCAM and CULT documentaries is equally drawn to the frauds being perpetuated now, and the fools falling for them.
Posted on 6/17/22 at 2:40 pm to Grievous Angel
quote:
The old billionaire investors know money, and Bill Gates knows the tech...
Gates also a very saavy and active investor. Cramer just did a tour of Silicon Valley and said that all of the tech execs are calling crypto a "con".
Posted on 6/17/22 at 11:20 pm to LSU82BILL
What about crypto is a "scam" or "con?"
Posted on 6/18/22 at 8:26 am to tenderfoot tigah
quote:
tenderfoot tigah
You are the band on the titanic.
Posted on 6/18/22 at 8:33 am to LSU82BILL
quote:
Gates also a very saavy and active investor. Cramer just did a tour of Silicon Valley and said that all of the tech execs are calling crypto a "con".
While they secretly buy millions of dollars of it...
Posted on 6/18/22 at 1:28 pm to cwill
quote:
You are the band on the titanic.
When you can't debate the idea, these are the responses you get.
I'll help you guys out so you can google search your answers.
What is a scam about Ethereum?
Posted on 6/18/22 at 1:51 pm to tenderfoot tigah
quote:
What about crypto is a "scam" or "con?"
I’d say it’s telling that this board’s spent the better part of the past five years debating crypto’s use. Ironically, we’ve never gotten past hypothetical use cases in the distant future. I suspect if we reviewed the old crypto threads we’d find that crypto is no closer to practical usefulness today than the days when wiki was championing it in 2015.
Posted on 6/18/22 at 3:11 pm to JKLazurus
quote:
I’d say it’s telling that this board’s spent the better part of the past five years debating crypto’s use. Ironically, we’ve never gotten past hypothetical use cases in the distant future. I suspect if we reviewed the old crypto threads we’d find that crypto is no closer to practical usefulness today than the days when wiki was championing it in 2015.
Smh not only have you not researched crypto, you didn't even read any of the current threads explaining actively used cryptocurrencies. Is a decentralized Apple App store useable enough for you? Or decentralized banking services? Or decentralized phone service? Or decentralized exchanges? Or decentralized CDs? Or decentralized data storage? Or decentralized internet? The list goes on and on.
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