Celsius Network Files New Coin: $2.5 Billion Balance Gap Reported

B. Ali
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Celsius Network‘s most recent bankruptcy coin report was just made public, and it doesn’t read much better than the one that was previously submitted in August. According to the report, which was made public on September 14, the cryptocurrency lender still has $6.1 billion in net coin liabilities against $3.6 billion in managed coin assets. It is also worth noting that the assets and liabilities have decreased by $500 million and $200 million, respectively, since last month’s data. In the August coin report, Celsius’s net liabilities were $6.6 billion, compared to the $3.8 billion total value of its coin holdings.

Decrease In the Value of Celsius Network

The ongoing downward rally in the Celsius value could be attributed to price declines in several digital assets in the larger crypto market. For instance, the cryptocurrency lender’s portfolio includes more than 25 different cryptocurrencies, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and its native CEL token. Most of these assets have been hurt by the current crypto winter, which has seen even coins with solid fundamentals, such as BTC, lose more than half of their previous all-time high price.

According to the coin report shared on Twitter by renowned bankruptcy attorney David Adler, the longest negative position for BTC was $1.8 billion.

While the company’s USDC holdings had a balance gap of $666 million, its ETH holdings had a balanced gap of $985 million. Furthermore, there are insufficient Polkadot (DOT), Cardano (ADA), Synthetix (SNX), and Polygon coins in Celsius (MATIC). Nonetheless, its CEL assets are worth nearly $930 million, while its liabilities are $394 million, resulting in a surplus of more than $530 million.

Celsius is Monitoring the Ethereum Merger

Celsius has stated that it monitors developments regarding the already released Ethereum Merge. In a series of tweets, the cryptocurrency lender indicated that it would be on the lookout for any user inquiries about potential forks and airdrops resulting from the Merge.

Furthermore, Celsius stated that it was looking for opportunities to increase the value of its assets that may arise as a result of the Ethereum Merge. However, Ethereum, the world’s second-most valuable cryptocurrency, with a market cap of just under $200 billion, is expected to save significant energy due to the switch to a proof-of-stake (PoS) consensus process.

Celsius Network Plans a Comeback as a Crypto Custodian

According to rumors, Celsius plans to restructure as a fully decentralized custodian of cryptocurrency holdings. During a private all-hands meeting with Celsius employees on September 8, company CEO Alex Mashinsky described the strategy. The cryptocurrency lender will be reimagined as a crypto custodian with an emphasis on safeguarding customers’ digital assets, according to a recording of the conversation provided to crypto enthusiast Tiffany Fong by Celsius executive Mashinsky and colleague Oren Blonstein.

The new project has been given the codename “Kelvin” in honor of the thermometer, according to Mashinsky. It should also be noted that Celsius’s CEO compared the company’s planned rebranding after bankruptcy to previous turnarounds at Pepsi and Delta Airlines. Both organizations, as we all know, declared bankruptcy in 1931 and 1926, respectively, but both emerged stronger and more well-known.

Mashinsky aspires for Celsius to be as successful as these two American business titans.

Related

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.