News BYT: Celsius in the Red

in crypto •  2 years ago 

The Vermont Department of Financial Regulation “believes Celsius is deeply insolvent and lacks the assets and liquidity to honor its obligations to account holders and other creditors,” the state watchdog said in a statement on Tuesday.

"Celsius deployed customer assets in a variety of risky and illiquid investments, trading, and lending activities. Celsius compounded these risks by using customer assets as collateral for additional borrowing to pursue leveraged investment strategies."

Ah... the delights of DeFi. I have tended to avoid such platforms, mainly because the mathematics looks shit and the dependencies can be catastrophic. Every leveraged product has these risks, whether licensed or not, but users who are unaware of what is going on two or three steps down the financial chain need to be more informed - and accept such risks. That a protocol has no deleveraging algorithms should be a huge red flag.

But, hey, red flags and bulls love to party.

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  ·  2 years ago  ·  

Someone was saying leverage is like x10 or x100 your chance of losing it all
Because most people playing this game do .
And defi i dont go in this either ..
For now the Bull is dead asleep and migh sleep way deeper and longer , so let it be

  ·  2 years ago  ·  

Right, but if someone is salivating at 200% APR, they should (must!) know that it won't be that in a year ;-)
So, without rules, the savvy investors must learn their own rules.

  ·  2 years ago  ·  

Also, the yield will attenuate to whatever the platform can genuinely create - sometimes that is zero.

  ·  2 years ago  ·  

Within a year ?

  ·  2 years ago  ·  

haha, that depends on the flow of greed and the poor tokenomics ;-)
Can happen within a month with a simple ponzi.

  ·  2 years ago  ·  

We will surely learn our rules .

  ·  2 years ago  ·  

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  ·  2 years ago  ·  

Re🤬eD

You know I was Down voted hundreds of dollars on hive because THEY said I was a thief and needed those funds returned to the reward pool so that they can play manipulation with HBDs
😐
I'm still certain that I will get at least ONE A-hole from hive arrested by his OWN government for such obviously worse activities that these other SCAMs like LUNA, oneCoin, you name it .
🤬

Appreciate your content. 🥓

  ·  2 years ago  ·  

Good luck with that one - look how long the case against JSun is taking.
I thought it was clever at the time - to insert a fake-robinhood figure between thieves. It still looks to me like the most likely scenario - an inside job to obfuscate the theft. Anyway, long story with further twists.

  ·  2 years ago  ·  

Good luck with that one - look how long the case against JSun is taking.

well, not Sue so much as hand over evidence to Politicians and officials who want to make an example out of someone. If I sued, I would have to make the case of harm and what not. If I hand over evidence of a crime to the right people then there seems to be a LOT of things that will take place... and to be sure, I am not interested in Justice or what not, BUT I am Interested in the Procedure making one particular person's LIFE very uncomfortable.

it'sa hellofahobby 🥓

  ·  2 years ago  ·  

Correct on both counts - the very bad game theory psychology where every vote is theft, plus they now hiding a ton of HBD which would otherwise show as way over their debt-ratio limit.

HBD control is now very Fed-like; plus it looks as if they are trying to make HBD the primary coin. Slowly.

Also, I made a small economic tweak some months ago to remove this "rape of the rewardpool" nonsense. Most don't notice it - which is good ;-)

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  ·  2 years ago  ·  

Welcome to delegate to help curation in blurt