The HODLers like it Hot

Trials of Celsius Network

Hey Guys,

So while the NASDAQ was destroyed today (June 13th, 2022), Bitcoin’s fall might have made the problem worse.

The worst thing imaginable for some investors occurred today. Crypto lender Celsius Network froze withdrawals and even Binance as well.

• Bitcoin down 12.3% today

• Bitcoin is down 22.9% in the last 5 days

This might be the bubble breaking for the speculative asset. Unfortunately the entire crypto and Web3 ecosystem hinges upon Bitcoin’s actual price point, a painful realization for newer investors.

I would not want to be Ethereum, Ape Coin, Aave, Waves, Elrond or any of those types of cryptos today or the past week, where they have lost nearly half of their total value.

So what’s going on? The crypto-lending firm Celsius Network halted withdrawals and transfers, amid an apparent liquidity crisis, as the price of Bitcoin plunged to pre-pandemic levels.

Their blog post on Sunday triggered a crash:

Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.

The Celsius move triggered a slide across cryptocurrencies, with their value dropping below $1 trillion on Monday for the first time since January 2021, dragged down by bitcoin , the largest token.

Celsius announced its halt as markets in Asia opened on Monday morning, and the price of its CEL token — worth nearly $7 a year ago — lost a third of its remaining value, falling to just 21 cents.

It’s current price is $0.32 on coinmarketcap. It’s only down 24% today, but how much lower could it go? It was in the 3$ range just a few days ago.

• Luna

• Celsius

• Who is next?

The Web3 implosion I told you was going to be real. If you took on so much risk during the euphoria you have no choice not to sell and wait out the storm. Given that crypto winters can last years, what are we even in for?

New Jersey-based Celsius, which has around $11.8 billion in assets, offers interest-bearing products to customers who deposit cryptocurrencies with its platform. It then lends out cryptocurrencies to earn a return. Maybe not the best business model in such a volatile asset? Like algorithmic stablecoins, sort of all predictable.

This is more or less worse than the fall of SPACs in the mainstream equity market. Bitcoin peaked in November, 2021 at $80k. It’s likely destined to go back down to around $8k. It’s the volatility that makes the Billionaires money. Now Wall Street, VC and Silicon Valley all have their teeth into it, and the one percent has reverse engineered the psychology around Web3 using social media amplification for profit.

Celsius, which promises high-yield returns on customer deposits, appears to be the latest crypto company to buckle under tightening financial conditions. It comes just one month after the collapse of the Terra-Luna (Quartz) stablecoin network. Retail investors are getting burned just as they need more cash to deal with inflation and rising rents and things like used-cars, gas and food prices.

It’s not a great situation for many Americans who gambled during the pandemic gamified as we are on a manipulated internet without regulation. But the pain is not over, it literally just the beginning.

The price of Bitcoin has fallen nearly 12 percent in the last 24 hours, shedding about $2,000 from its price since the Celsius news came out. In recent weeks Bitcoin likes to hang out around $30k, but now it’s slipped to $23k, should we be concerned?

Celsius is just saying it’s being a good corporate Web3 citizen:

We understand that this news is difficult, but we believe that our decision to pause withdrawals, Swap, and transfers between accounts is the most responsible action we can take to protect our community.

No mercy, no malice, no regulation - so what’s new in Web3? Many of the lush startups and NFT platforms are going to die out, before they were even born. It’s going to make the ICO fraud of the last Bitcoin bull market look small in terms of pain to real people and consumers.

That’s the crypto ethics summed up in a nutshell. The whales love this stuff, the little guys not so much. Of course you've probably been brain washed into believing in the ethos of Bitcoin, and a part of your heart is held captive at its altar. Who cares, when it should be $1 million by 2030 am I right? We shall see. This too shall pass.

Thanks for reading guys!

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