WTF IS GOING ON WITH CRYPTO? (Celsius Bankruptcy, XRP, & MATIC News)

WTF IS GOING ON WITH CRYPTO? (Celsius Bankruptcy, XRP, & MATIC News)

I have three main news stories that you need to know if you’re a crypto investor, including Celsius and bankruptcy, the Matic token in Disney’s ripple versus the SEC update, and much more.

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Celsius Network Files for Chapter 11 Bankruptcy EXPLAINED

The Celsius network has officially filed for chapter 11 bankruptcies, and even though the crypto lender right now has over $167 million in cash on hand, they will continue to freeze customer withdrawals. So let’s dig in to these details, starting with a direct statement from their bankruptcy filing on why they chose to halt withdrawals in the first place.

“Today’s filing follows the difficult but necessary decision that was made last month by Celsius to pause withdrawals, swaps, and transfers on its platform to stabilize its business and protect its customers. Without a pause, the acceleration of withdrawals would have allowed certain customers – those who were first to act – to be paid in full while leaving other customers behind.”

So, in other words, Celsius was over leveraged and to prevent a bank run, they froze everybody’s assets. Now, in a direct quote from Alex Mashinsky, CEO, he said,

 “This filing for bankruptcy is the right decision for our community and company. 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.”

Okay, what do you think about that statement? I think people are going to look back and most likely look at Celsius as a failure for over leveraging their company and putting all their clients’ funds in danger now.

An important distinction is with this chapter 11 bankruptcy, if they were able to return all of their clients’ funds in the future, they do still have the ability to rewrite some of their narrative, their legacy in crypto, and they are still going to try, because they did file for chapter 11 and not just chapter 7.


So let’s talk about the potential of what could happen, as one crypto user says,

‘Let’s see how things develop. I’m predicting some sort of buyout of the assets, including us! We may take a “haircut”, but we will finally have some news”

 And that’s true. The biggest unknown in all this is how many more loans and debts Celsius still has to pay off. And while I can’t see any new users or new crypto investors choosing to go back to Celsius’s platform once they open things up. Technically, the company is not going away. The sell token, as of now, is not going away.

Is CEL Token A Good Investment in 2022?

In fact, some analysts are seeing a recovery for the sell token despite Celsius’s bankruptcy announcement. Now keep in mind, I’m not a financial advisor. I can’t see the future. I can’t see the future. Neither can these analysts. It is just speculation, but the reason that some people are saying that cell tokens might recover is not me yet. Some people are saying that the reason is that a Chapter 11 filing is frequently referred to as a “reorganization” bankruptcy, which means, as we sort of mentioned, the debtor remains “in possession” of and may continue to operate the business and can borrow new money with court approval. The code is mostly used by large businesses to help them reorganize their business debts and repay their creditors while continuing their operations.

 Of course, in two months, six months, or a year from now, if Celsius did continue their operations, the sell token was previously used in exchange for services and as a reward on the platform, with wallet balances having over 20 % of their holdings and CEL tokens. If they had at least 20% in their wallets of sold tokens, they obtained a 30 % bonus interest and a 30 % loan interest discount, and that’s exactly what got them into trouble in the first place. So they will never be offering something like this again, but even if they took it down to maybe a 7% bonus or a 5% bonus, I don’t see the trust coming back to deposit my money into Celsius. But again, what this article is arguing and what some other people are saying is that Celsius will recover eventually. As I get more info, I will keep you updated.

Polygon Joins Disney’s 2022 ‘Accelerator Program’

Polygon joins Disney’s ‘Accelerator Program’ to develop AR, NFT, and AI experiences. So if you hold Matic, this is a huge win, a huge show of support from Disney. Polygon is now one of six companies selected to participate in Disney’s 2022 accelerator program, a business and development program designed to spur the growth of innovative companies around the world. Specifically for 2022, the focus of this program will be on developing new technologies in augmented reality, non-fungible tokens, and artificial intelligence.

Why this is so cool? If you hold polygon is because one, not only does Disney have a ton of IP that has not been NFT’s yet, but two, what Polygon will receive from Disney in this program. During the course of the program, each participating company will receive guidance from Disney’s senior leadership team as well as a dedicated executive mentor. Polygon is the only blockchain native platform selected in this six-company line-up. So the communication is there. Polygon will be learning about Disney’s needs and Disney will be learning how to develop in this brave new world on the Polygon blockchain.

Ripple HUGE Win Against SEC as Judge Accuses SEC of “Hypocrisy”

 Ripple Scores win against the SEC as the Judge Slams Agency’s “Hypocrisy”. The SEC’s hypocrisy here are the key takeaways from Tuesday: U.S. magistrate judge Sarah Netburn denied the SEC’s motion to keep the infamous Hinman speech under wraps. I’ll remind you of what this is in a second, but in justifying this ruling, judge Netburn called the SEC’s litigation tactics hypocrisy and slammed the agency for putting its own goals ahead. With the faithful allegiance to the law, legal experts have dubbed the decision a body slam and a significant tactical win for Ripple. I would tend to agree that Ripple did just have a small win here.

Just as a reminder of what the Hinman speech was about, it was on June 14th, 2018. He spoke at the Yahoo Finance’s All markets Summit: Crypto one-day event in San Francisco, in which he remarked on the agency’s use of the Howey Test to determine whether ETH constitutes a security.

In a direct quote, he said:

 ‘So when I look at Bitcoin today, I don’t see a central third party whose efforts are key, a key factor in determining the success of that enterprise. The network on which Bitcoin functions is operational and appears to have been decentralized for some time, perhaps from inception. Applying the disclosure regime of the federal securities laws to the offer and resale of bitcoin would seem to add little value. Furthermore, putting aside the fundraising that accompanied the creation of ETH, based on my understanding of the present state of ether and the Ethereum network’s decentralized structure, we believe current offers and sales of ETH are not securities transactions as with bitcoin. Applying a disclosure regime similar to the disclosure regime of the federal securities laws to current transactions and ETH would seem to add little value.’


 So, he was saying that maybe the ICO of Ethereum, maybe you would consider that a security. In his opinion, the current Ethereum network does not meet the criteria of security by SEC standards. Now why do Ripples care? Well, ripple has argued that Hinman’s remarks contradict the SEC’s claims that XRP is a security, meaning XRP should fall under similar standards in contrast. The agency has fought hard to keep the speech under wraps and prevent it from being used as evidence in court, asserting that it is a “purely personal errand” and doesn’t reflect agency policy.

So the SEC was saying that those were Hinman’s personal views, not the agency’s views, but surprisingly, Judge Netburn disagreed. She’s siding with Ripple as of two days ago. She said,

‘The hypocrisy in arguing to the Court, on the one hand, that the Speech is not relevant to the market’s understanding of how or whether the SEC will regulate cryptocurrency, and on the other hand, that Hinman sought and obtained legal advice from the SEC council in drafting that speech, suggests that the SEC is adopting its litigation positions to further its own desired goal and not out of a faithful allegiance to the law.’

 So the speech stays in. She’s saying that this speech does represent the SEC’s views back then in some sense, and it should be on record in this case. 

[This article is a transcription of a video made by Altcoin Daily]

[Original video:]