Play with fire – Since the cryptocurrency market has been at half mast, Celsius has been hot, very hot in the… wallet. Indeed, while the cryptocurrency platform was still brewing $12 billion in Maythis one is at the edge of I‘insolvency since June 13. Despite the cessation of deposits and withdrawals in its ecosystem and the help provided by consulting firms, the latter has not managed to stop the fire. The company appears to remain on the verge of liquidation. In this misfortune, some, good prince, find their interest in it: this is the case of Goldman Sachsthe American banking giant.
Celsius, has a fever…
The cryptocurrency platform has been feverish for some time now. However, certain actions have been put in place to get it out of the hot coals. The first was to use two companies specializing in corporate restructuring : the Alvarez & Marsal agency, as well as the av cabinetohcats Akin Gump Strauss Hauer & Feld. The Citigroup bank also contributed to finding possible solutions. To put out the embers and lower the fever, the various stakeholders then recommended Celsius to file the balance sheet.
The Celsius community has also tried in its own way to ventilate. To do this, she proposed on social networks a “ Cel Short Squeeze “. This is to thwart traders who bet low on the platform (shorter). To do this, users buy the CEL cryptocurrency and withdraw it from exchanges. This trading operation has the effect of reducing the available liquidity and therefore increasing the price of the token. In short, those who play with fire and bet low get out of the market.
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… Goldman Sachs and the doctors of finance at its bedside
It is therefore in this context that our colleagues from CoinDesk were the first to announce the news yesterday. Goldman Sachs would like to raise $2 billion from investors to buy Celsius assets. However, the American institution does not play the firefighter with a big heart. On the contrary, the interests of the American bank are numerous and the banking giant is taking full measure of the potential of cryptocurrencies in the long term.
This potential fundraising would indeed allow, if Celsius is filed for bankruptcy, to redeem cryptocurrencies at discounted prices. However, for the time being, Celsius does not claim to be officially bankrupt.
However, the American bank is not at its baptism of fire. This decision would rather be part of the continuity of a strategy that is no longer very young. Indeed, Goldman Sach continues to show its interest in cryptocurrencies, surrounding itself with giants of the web sector 3 such as FTX and Coinbase. The company also confirmed its love for the king and queen of cryptocurrencies by offering OTC deals Bitcoin and Ethereum.
The objectives are not yet clear and defined. Will Goldman Sachs itself manage Celsius’s assets? Will she decide to call on a bank or a third-party custodial agent? If we take a little height, however, it appears that in this story, traditional finance is eyeing the fall of cryptocurrencies. It’s not just about firewalling to profit from buying cryptocurrencies and other assets. Indeed, if this fundraising is successful, Goldman Sachs, a traditional finance player, would then be able to become a new crypto giant.
Another one bites the dust.. Another giant of the crypto ecosystem bites the dust. Avoid leverage for a while and you’ll be fine. Register without delay on the FTX reference crypto exchange platform. In addition, you benefit from a lifetime reduction on your trading fees (affiliate link, see conditions on official website).