Celsius network officially files for Chapter 11 bankruptcy. Polygon teams up with Disney. And is Binance burning tokens? My name is Taco. This is your nightly crypto news wrap-up. Let’s get it! Celsius was once one of the largest players in the crypto lending space. We’re talking more than $8 billion in loans to clients and almost $12 billion in assets under management. And remember, a lot of your mom-and-pop investor types were wrapped up in this.
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Celsius said it had 1.7 million customers as of last month. Now, the reason that the platform was able to capture so many users was because of its almost unbelievable returns. Its interest-bearing accounts were really attractive. Yields were as high as 17%. And, well, returns like that, they’re not real. We know of at least one lawsuit where Celsius is being accused of functioning like a Ponzi scheme. One of the largest crypto lending platforms, Celsius, has been at the top of headlines in the last two months for all of the wrong reasons. Now, the company has moved to file an official Chapter 11 bankruptcy. Previously known for generating high yield staking options to the average investor, Celsius appears to be fully collapsing under its own weight and now aims to “financially restructure” in hopes of emerging back in the crypto industry with position for success.
As it turns out, fractional reserve banking should be left to the traditional players of the game that can tap infinite bailout money as we saw during the housing crash of 2008. Since the original halt of withdrawals shocked crypto holders, many state regulators have moved into investigating the firm calling it likely insolvent and leaving retail holders with funds locked on the platform in the dust with no outlook of ever getting the funds back. Alex Mashinsky put out a recent statement claiming, “We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence serves the community and strengthens the future of the company.” The damage this company has caused to overall trust in the crypto space will not be easily redeemed, but the silver lining of this event might actually help future companies avoid similar shortfalls. While retail is mostly keeping their heads low, a major announcement from Disney caused a much needed stir of hope for Polygon investors this week. Walt Disney just announced a major partnership with Polygon on the Ethereum network, paving the way for the future of immersive experiences, NFTs and augmented reality through the Disney Accelerator program.
Disney is focused on the next generation of storytelling on the Web3 experience for users across physical, digital and virtual worlds. General Manager of the program, Bonnie Rosen, says, “For nearly a century, Disney has been at the forefront of leveraging technology to build the entertainment experiences of the future. The Disney Accelerator is thrilled to be a part of that legacy, and with our newest class of companies, we look forward to furthering our commitment to innovation and continuing to bring magical experiences to Disney audiences and guests for the next 100 years.” MATIC fell with the rest of the market yesterday morning after Bitcoin tumbled down over $1,000 in the matter of minutes, but MATIC quickly rebounded over 20% once the news with Disney broke. Polygon is shaping up to be one of the hottest altcoins to watch for the next bull run and has already doubled in price since June lows. Stay tuned. Burn, baby, burn! Binance is continuing to show its strength as a leading platform in a time where crypto investors might need it the most.
With a continued reduction in supply of BNB, the Binance native token, the BNB Auto-Burn has completed the reduction of nearly 1.96 million tokens valued at $444 million. CZ, the CEO of Binance, says, “During this downturn and all market cycles, our goal is to continue building and investing in the industry and projects to spur adoption and further infrastructure growth. Historically, bear markets have been great periods for focused and long-term-minded builders.
This time, we continue to be bullish on our capability to support founders looking to build innovative, long-term solutions for our industry.” Companies with this long-term mindset will surely rise above the rest as we approach the next leg in our cycle. It really is great to see companies stand their ground on a deflationary measure and protect investors during the turmoil of the market and serves a great reminder for us in crypto. When in doubt, zoom out.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/1GJFnidduBo
