Wall street bets 2.0? How the Celsius community wants to save its society

Celsius is not defeated yet. The lending platform, which got into trouble, issued a new statement, according to which the company will not just give up.

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Will Celsius get a new chance?

The press release, which does not provide much relevant information, states:

We want our community to know that our goal remains to stabilize our liquidity and operations. This process will take some time.

Support for the remediation process also comes from the crypto sector itself. Because in the post on blog announces fintech investor Bank to the Future a rescue for Celsius. CEO Simon Dixon writes that he is "very interested in supporting Celsius with a rescue plan."

It is not yet clear exactly how this should happen. However, the orientation could be the rescue of Bitfinex from 2016. At that time, Bnk to the Future managed to recover almost all the lost funds of customers using the BFX token.

The victims of the hack, during which 120,000 BTCs were stolen, received BFX in the amount of their losses and could either later sell them on the open market with speculative profits or have Bitfinex pay out the equivalent of one US dollar.

The rescue was indeed partially successful, and Bitfinex could pull his head out of the noose.

The community also supports Celsius

Meanwhile, the community is also forming a movement to support Celsius. Like the subreddit r / wallstreetbets Celsius fans are currently massively buying CEL tokens to trigger a short squeeze. According to the initiators of the event, large financial institutions have built massive short positions of CEL tokens and bet on the collapse of the ecosystem.

But instead of a downward trend, the token has actually headed north on several occasions over the past seven days.

This in turn puts the CEL bears in an awkward position. After all, shorts are made up of borrowed capital that must eventually be repaid. If the bet fails, the short-lived trader must buy the tokens back at a higher price, thus suffering heavy losses.

The Celsius case

Celsius was one of the most widely used protocols for those seeking income through decentralized finance (DeFi). Therefore, it was used by other protocols and companies, such as Tether Limited.

Amid the sharp devaluation of the cryptocurrency market, Celsius' lending protocol was appalled by paralyzing user choices. The team cited "unfavorable market conditions" as a justification for the measures. The protocol also carried out several transactions in Ethereo (ETH) and Wrapped Bitcoin (WBTC), which raised suspicions of possible fraud.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.