Connect with us

Crypto news

Celsius Network Cites More Distress, No Support From Its Largest Investors

Published

on

Celsius Network Cites More Distress, No Support From Its Largest Investors

Celsius Network LLC, the struggling crypto lending service, is likely to tackle its financial fights alone, according to numerous sources obtained by WSJ. This is because the firm is unlikely to get funds from two of its largest investors.

Caisse de dépôt et placement du Québec (CDPQ), a Quebec-based pension scheme, and American investment firm Westcap Group together headed a $400 million Series B fundraising round for Celsius Network in October 2021. After a month, the fund was increased to $750 million.

Celsius’s valuation increased to $3.25 billion following the completion of the Series B. However, indications by industry participants who knew about the situation, indicate that fresh funding from such investors to rescue the firm from its current condition is doubtful.

According to an insider, the main reason for investors to exit is that they cited a greater danger than anticipated. This move looks logical because the firm’s current state of affairs and the ongoing issue is not in a good condition recently.

Advertisement

Celsius Network on A Weak Spot

Celsius Network is indeed facing an imminent economic collapse for some time now. This is threatening the whole status of the organization despite its refusal to accept it.

Owing to “extreme market circumstances,” the site temporarily halted withdrawals, swaps, and transfers between accounts just a few days ago. The business stated that the move was made to better the situation for investors to meet withdrawal commitments.

Using Oasis to monitor the firm’s collateral status indicates a 195% collateralization level with a $545 million WBTC debt. Furthermore, the liquidation price for BTC is at $16,852. If BTC falls below that level, the firm’s stake will be liquidated without any further backing.

Was this writing helpful?

Advertisement

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

  • Website
  • Facebook
  • Twitter
  • LinkedIn

Crypto news

Elon Musk to Receive More Data From Twitter To Analyse Bot Accounts

Published

on

Elon Musk to Receive More Data From Twitter To Analyse Bot Accounts

After Elon Musk expressed his displeasure with Twitter’s data on bots and spam accounts, the company agreed to share more information with him.

Twitter provided additional information on bots, including real-time API data, which is probably all Elon Musk needs to move forward with the $44 billion acquisition offer, as reported by Business Insider.

The statistics on daily active users is not sufficient, according to a letter Musk’s attorneys delivered to Twitter, according to sources. Elon Musk requires more information because his staff was unable to analyze bot accounts.

Earlier, Elon Musk had threatened to end the relationship with Twitter if the social media company did not reveal information about bot accounts.

Advertisement

While maintaining that less than 5% of accounts on Twitter are bots, Twitter published data on daily active users and bot accounts.

Some business experts think Elon Musk is trying to paint Twitter as being non-compliant by making constant data requests. He does this to try to get the acquisition transaction renegotiated at a lesser price.

Musk Wants Clarity on “Bots”

 Musk thinks Twitter has more than 20% bot or spam accounts, and that Twitter’s claim that this number is less than 5% is untrue.

He therefore decided to postpone the Twitter deal until he had a firm understanding of how many of these accounts there were.

Prior to a more significant stock market correction, he had already agreed to purchase Twitter for $54.20 per share.

Advertisement

The company’s shares are currently trading for less than $39. Twitter may sue Musk in the event that he backs out of the agreement.

The deal is a top priority for the board of directors of Twitter. Even more, the board has advised Twitter shareholders to vote in favor of the transaction.

To approve the agreement, a special shareholders meeting will be conducted in late July or early August.

The new information includes a stream of Tweets and user activity on the site, also accessible to developers through Twitter’s developer platform.

Was this writing helpful?

Advertisement

Continue Reading

Blockchain

Not In A State To Support Failed & Poor Performing Cryptos, Claims Binance

Published

on

Not In A State To Support Failed & Poor Performing Cryptos, Claims Binance

Following FTX’s assistance to insolvent crypto lenders BlockFi and Voyager, there have been suggestions that Binance may also declare some bailouts. 

Binance has finally broken the silence and addressed the situation.

The firm stated that it is not in the mindset to assist “poor” or failing cryptocurrency initiatives, which also include ‘ill-considered,’ ‘badly handled,’ or ‘poorly organized’ undertakings. Binance stated in its most recent article that bailouts for such ventures are unnecessary and must not be safeguarded.

The post asserts not to keep terrible firms going. However they should allow better ventures to prove their worth, which they will. During the current market downturn, crypto lending businesses were in demand to sell due to huge take on debt.

Advertisement

However, Binance highlights certain kinds of enterprises that we should keep out. According to them, these projects are the ones that are committed to minor errors.

While explaining its points, Binance states that these are now either overspending, have inadequate savings, or have other small, repairable issues. Also the firm believes that such projects often have a few positive characteristics. These are as product-market fit, revenue generation in standard market situations, strong business frameworks, competent teams, and so on.

SEC Commissioner Not In Favor Of Bailout

Shortly following FTX announcement of a $250 million liquidity transfer to rescue out BlockFi, the crypto-friendly SEC Commissioner stepped in. According to her, the latest market crisis is a normal way of splitting the powerful from the poor. Allowing things to unfold gradually.

Peirce stated in an interview with Forbes that there is no rescue option in crypto […] She doesn’t like to claim that they will attempt to find a method to rescue them if they do not have enough right to do so.

However if it happens, she says she will not want to utilize that power. This is because as per the commissioner, there is a need to let these things unfold on its own. Hester Peirce, a cryptocurrency enthusiast, also stated that the collapse might be a useful life lesson for industry players and authorities.

Advertisement

Was this writing helpful?

Continue Reading

Crypto news

Shiba Inu Adds Up Another Zero To Its Price Tag! Is This A Sign Of An Incoming SHIB Run?

Published

on

By

Shiba Inu Adds Up Another Zero To Its Price Tag! Is This A Sign Of An Incoming SHIB Run?

 The crypto market is presently holding onto its crucial levels, despite the majority of the assets losing out on single-digit gains. The market capitalisation of the broader market is presently down 2.79% over the day at $900.21 B. However, one of the few to have out run the industry standards is Shiba Inu’s SHIB. 

Successively, the meme coin Shiba Inu has posed an astounding growth over the last 24 hours. The double-digit spike has been overwhelming for the community. This comes in light of initiatives such as liquidity injection, and burns. An addition to Shiba Inu’s feathers comes following the acceptance of the luxury brand Hublot. Which holds the potential to bring in new investors. 

Have These Catalysts Fueled SHIB’s Run?

 The meme coin Shiba Inu is now the talk of the crypto town for its heroic comeback on the charts. The canine coin SHIB had managed to gulp up another zero, with gains of over 30%. SHIB price is presently changing hands at $0.000009566 with gains of 15.41%. Netizens are contemplating the growth to be driven by the injection of liquidity and burn initiatives. 

Although subjective, token burns have been rising more than ever before. Consequently, a single user is known to have burnt close to 2 Billion SHIB, since the November of 2021. Moreover, giants like Johnson’s store and Amazon have collectively set ablaze more than 70 Million SHIB tokens. 

Advertisement

In contrast, in a boast-worthy feat, Shiba Inu sees acceptance by Swiss luxury watchmaker Hublot. In a public statement, Hublot cites that its latest series of 200-limited-edition watches are now available for online purchase using cryptocurrencies, through BitPay. That said, the payments are limited to customers from the U.S. 

Concluding, marketers are wishful of the run compounding into the one like 2021, when SHIB had posed an extravagant rally. With an increasing number of luxury brands accepting SHIB, the meme coin could draw in newer investors. Who could help escalate the price during bull runs or help keep the prices afloat during a bear season. Meaning it is a win-win situation for the digital asset.  

Was this writing helpful?

Advertisement
Continue Reading

Trending

Get our daily News updatesSignup to get instant updates straight to your email