Celsius Network’s lead investor BnkToTheFuture and its co-founder Simon Dixon have proposed a recovery plan for the beleaguered crypto lender. In a June 18 statement, Dixon – also BnkToTheFuture’s CEO – said the solution involves security tokens, debt, and equity. To prove the recovery plan works, he noted that Bitfinex previously used a similar strategy.
According to Dixon, BnkToTheFuture helped save Bitfinex from liquidation in 2016 after the exchange suffered a high-profile hack. He did not specify how security tokens, debt, and equity fit into the picture. However, Dixon said investors in the recovery plan got high returns for the risk they took.
Explaining the secrecy, Dixon said he was waiting for Celsius CEO Alex Mashinsky and the Celsius board to be ready.
I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors.
He added that he wants to help Celsius because he is a shareholder in the company. Additionally, Dixon said he is a Bitcoin (BTC) evangelist who wants to help alleviate Celsius Network’s impact on BTC holders.
Celsius Continues Trying to Stabilize Operations
While Dixon believes BnkToTheFuture can help ease Celsius’ problems, the Celsius team is yet to say anything about this.
In a note to its community, Celsius said it is still trying to stabilize its stability and liquidity. The company reiterated that this process would take time. Celsius did not divulge any specific plans. However, it said it is engaging in open talks with regulators and officials to find a solution.
In what seems to be an effort to resolve liquidity issues internally, WSJ disclosed that Celsius had hired restructuring lawyers last week. According to WSJ, Celsius hired attorneys from Akin Gump Strauss Hauer & Feld LLP. These lawyers will, reportedly, advise Celsius on potential solutions for its financial woes.
Before BnkToTheFuture, Nexo proposed buying out Celsius to help protect the company’s customers and the broader crypto community. Celsius is yet to respond to Nexo’s acquisition offer.
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
— Nexo (@Nexo) June 13, 2022
Meanwhile, the Celsius community is considering short-squeezing CEL to help increase the token’s price. According to Twitter account @Celsians, the CEL short-squeeze would involve buying CEL from top exchanges and moving the tokens to Metamask wallets. The next step would be connecting the wallets to 1inch and setting the limit order at $100.
1/16 Let’s wait to hear an official statement from @CelsiusNetwork. But if that statement is positive, then this is GameStop, AMC and Wall Street Bets all over again (the sequel.)
These are my thoughts on the short sellers. I can only speak for that part of the attack on https://t.co/BbnmeBR1RT
— #CELShortSqueeze ©️ ⚡️ (@otisa502) June 15, 2022