According to the tech website CTechCelsius Network has fired 150 workers to continue operations.
The troubled lending platform announced a suspension of withdrawal on June 13 due to “extreme market conditions.” A few weeks before the announcement, rumors spread that the company went bankrupt, and then CEO Alex Mashinsky denied the claim.
Since then, it has become clear that a key factor in a company’s bankruptcy has been the inability to properly manage risk. Comment on Celsius’s worries Campbell HarveyA professor of finance at Duke University said:
“Now, given the variability of this space, we need to do some basic stress tests.”
Similarly, the troubled crypto investment platform, Three Arrows Capital (3AC), filed for Chapter 15 bankruptcy on July 1.
Helpline that users can contact
Celsius users got stuck after announcing that they would suspend their withdrawal three weeks ago.
Since then, the threat of bankruptcy has been imminent, and the company has been silently praying, causing further frustration on the part of users.
June 30 Celsius He broke the silence by posting a blog update stating that he was working on “liquidity and operational stability.” She then referred to taking the necessary steps to “preserve and protect assets” and sought options such as “pursuit of strategic transactions” and restructuring.
“We are focused as quickly as possible to stabilize liquidity and operations.”
The blog post also published helpline numbers and messaging services for users to reach out.
Previous communication was on June 20When the company says it is working with regulatory agencies and authorities.
Is Celsius fighting back?
Despite the spotted and vague communication from Celsius, that action suggests that management is keen to save the company.
Celsius does not provide an official number for that workforce, LinkedIn page We offer a range of 501 to 1,000 employees. According to the business information research platform Ourer, Celsius has 850 employees. If so, the layoff represents 18% culling of staff.
Similarly, Twitter account @BTCKYLE Celsius posted that he repaid $ 50 million to Aave on July 3, improving the loan health ratio and releasing a significant portion of the customer’s funds.
* Update 1/3/22 * (Large payment ✅)
Celsius paid an additional $ 50 million for the Aave loan!
New Loan Health Ratio ~ 2.76
This is huge! @CelsiusNetwork We continue to strive to free our customers’ money. They are doing exactly what we want to see! 🔥 https://t.co/j1kLm1H0ow pic.twitter.com/bXXNTVxZKr
— ₿TCKYLE (@BTCKYLE) July 3, 2022
CEL tokens reached resistance at $ 1.03 after rising 43% on July 3 and closed at $ 0.90 per day. At the time of writing, CEL was down 0.4% from the previous day’s closing price.
