Celsius Network News: To Avoid Bankruptcy, It Takes Affirmative Measures
The problematic lending and borrowing business recently made a sizable loan repayment as well as staff reductions.
Celsius Network news:Celsius Network reportedly fired 150 employees in an effort to continue operating, according to the news website CTech.
On June 13, the problematic lending and borrowing platform made an announcement pausing withdrawals due to “extreme market conditions.” A notion that the company was bankrupt was made public in the weeks before to the announcement, however CEO Alex Mashinsky at the time refuted it.
Since then, it has become clear that the company’s incapacity to manage risk effectively played a substantial role in its demise. Professor of finance at Duke University Campbell Harvey offered the following analysis on Celsius’s problems:
” Come on，given the volatility of this room, you need to do some standard stress-testing.”
In a similar way, the beleaguered crypto financial investment platform Three Arrows Capital (3AC) applied for Chapter 15 personal bankruptcy on July 1. Several wonder if it’s a matter of time before Celsius does the very same.
Open for Users to Contact via Helpline
Following the announcement to suspend withdrawals three weeks ago, Celsius users were left in a limbo.
Since then, with the threat of personal bankruptcy looming, the business has gone completely silent, further aggravating customers.
Celsius finally spoke on June 30 when it published a blog update announcing that company was striving to “stabilize liquidity and operations.” It went on to mention taking the required efforts to “preserve and protect assets” and looking at possibilities like restructuring and “pursuing strategic mergers.”
“We are committed to stabilizing liquidity and operations and moving as swiftly as we can.”
The blog post also promoted a message facility and helpline number for users to contact.
The business previously informed customers on June 20 that it was cooperating with authorities and regulators.
Is Celsius Retaliating?
Despite its sporadic and ambiguous communication, management appears committed to saving the company based on its actions.
Although Celsius does not publicly disclose its personnel count, the range it lists on its LinkedIn page is between 501 and 1,000. Celsius employs 850 employees, according to the business information research portal Owler. If true, the reduction in employee size caused by the layoffs is 18 percent.
Similarly, Twitter user @BTCKYLE said that Celsius paid $50 million back to Aave on July 3, boosting the loan health ratio and freeing up a sizable portion of consumers’ money.
On July 3, the CEL token increased 43 percent before encountering resistance at $1.03, which caused a daily close of $0.90. As of this writing, CEL is trading 0.4% lower than its day’s prior closing price.