Celsius Lead Investor Proposes Recovery Plan for Network

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One of Cel­sius Net­work’s ear­li­est investors has pro­posed a recov­ery plan to help the belea­guered com­pa­ny. Details will be revealed when the board is ready.

Simon Dixon, the founder of Web3 invest­ment firm Bnk to the Future, pub­lished a state­ment talk­ing about “a solu­tion using finan­cial inno­va­tion” to resolve the problem.

While details on the recov­ery plan are scant, Dixon is opti­mistic that Cel­sius Net­work could be saved in a way sim­i­lar to how Bitfinex was in 2016. 

Dixon talks about how secu­ri­ty tokens, debt, and equi­ty were used to pull Bitfinex out of liq­ui­da­tion. He says that he per­son­al­ly invest­ed in Cel­sius as well.

“As a Cel­sius share­hold­er, lender and Bit­coin evan­ge­list and due to the short-term sys­temic impact on those that own Bit­coin… In 2016, Bitfinex need­ed a plan to recov­er from their hack and the com­pa­ny I co-found­ed, BnkToTheFuture.com, sup­port­ed them and exe­cut­ed a recov­ery that involved secu­ri­ty tokens, debt, and equi­ty and gave investors a very high return for the high risk they took,” he said.

Dixon is more con­cerned about the com­mu­ni­ty mem­bers who may have invest­ed a large por­tion of their cap­i­tal, which obvi­ous­ly would have affect­ed them worse. He is aim­ing to help com­mu­ni­ty mem­bers through their recov­ery as well as edu­ca­tion in risk management.

Dixon is the CEO and co-founder of Bnk to the Future. He is well known for being an investor in fin­tech com­pa­nies, and Bnk to the Future lets users invest in fin­tech com­pa­nies, funds, and alter­na­tive finan­cial products.

Celsius still in deep water

The fall of Cel­sius Net­work is one of the market’s biggest devel­op­ments in recent years, and the mar­ket crash has been par­tic­u­lar­ly dam­ag­ing to the plat­form. The mar­ket cap sank to $290 mil­lion, and after this, it had to sus­pend all withdrawals.

Nansen even said that the col­lapse of the Cel­sius Net­work was part­ly respon­si­ble for the col­lapse of Ter­ra. Cel­sius has had to hire insol­ven­cy experts as it expects to car­ry out finan­cial restruc­tur­ing. At the same time, a cryp­to influ­encer has launched a class-action law­suit against Celsius.

It is not just Cel­sius that is affect­ed. Babel Finance has also paused with­drawals as the mar­ket expe­ri­enced one of its worst retractions.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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