Celsius Creditors May Get “Rug Pulled” Due To Rising Crypto Prices: Analysis

  • December 13, 2023
Celsius Creditors May Get “Rug Pulled” Due To Rising Crypto Prices: Analysis

A lot of crypto financiers have great factor to be positive this week, Celsius lenders might be in for a bad offer if digital possession rates continue to climb up.

The insolvent crypto financing company might quickly have the ability to pay its cash-based financial obligations just by liquidating its recently rewarding Bitcoin (BTC) and Ethereum (ETH) holdings alone. That would indicate the insolvency gets away with more possessions, while its counterparties are paid back at a much more challenging time to get in the crypto market.

The Celsius Dilemma

According to @CelsiusNewCo on X– an account handled by numerous Celsius lenders– the company will have the ability to “rug pull all financial institutions” if BTC reaches $54,879 per coin, and if ETH reaches $3,750.

The account pointed out a thread from Simon Dixon– CEO of BankToTheFuture, a significant Celsius financier– published in July, utilizing numbers computed by his company. The price quotes were based upon a 50/50 liquidation basis for each coin.

“It is really essential that we leave Chapter 11 before Bitcoin & & ETH approach these numbers to prevent another carpet pull that we will require to combat tough versus if it turns up,” he stated at the time.

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