The thermometer reading is showing a really high number in celsius, not fahrenheit. Yes, cryptocurrency giant, Celsius, has gone bankrupt. High frequency and flash temperature crash of Bitcoin is the reason: “the New Jersey-based firm had accumulated more than $20 billion in assets by offering depositors interest rates as high as 18%”. If you have that type of positioning, you will be off in principal and severely wounded in interest rate when the asset is crashing in days.
In banking, you are in a double whammy scenario and the outcome is always predictable: bankruptcy. The only pain is that a “decentralized world” of crypto believers is coming back to a centralized system of bankruptcy. Why is that necessary? It comes down to one thing: every crypto derives its existence from a system, and that system is managed by a government.
That is why no one has started a crypto company in my village, in Abia State, because jurisdictions matter for competitive advantages. If crypto is indeed wholly decentralized, the distribution of creators will be unbounded and unconstrained by geography. My point is this: stop the illusion that your coin is out of the reach of governments! Nothing like that.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Troubled cryptocurrency lender Celsius Network has filed for Chapter 11 bankruptcy protection, a month after it froze more than a million customer accounts. Before halting withdrawals, the New Jersey-based firm had accumulated more than $20 billion in assets by offering depositors interest rates as high as 18%. Celsius is the latest casualty of a crypto crash that has wiped out $2 trillion in value. Crypto broker Voyager Digital filed for bankruptcy last week and major crypto hedge fund Three Arrows Capital sank into liquidation late last month. (LinkedIn News)
---
Register for Tekedia Mini-MBA (Jun 3 - Sep 2, 2024), and join Prof Ndubuisi Ekekwe and our global faculty; click here.