Bankrupt Crypto Broker Celsius Has New Plan Codenamed ‘Kelvin’

A gold bitcoin partially stuck in a block of ice, everything turns blue.

The ongoing crypto winter has created quite a bit of “cold crypto” pun, but we haven’t encountered any companies actually saying they want to hit “absolute zero” so far.
image, mike_o ,Shutterstock,

Kelvin, as a temperature scale, uses “absolute zero” as its baseline. The lowest imaginable temperature would effectively stop all particle activity due to any loss of energy. That point of temperature has never been achieved, but failing crypto firm Celsius is looking to approach “absolute zero” during this ongoing crypto winter.

new York Times First reported on Tuesday, based on a recorded internal meeting, “Kelvin” is what bankrupt crypto lending firm Celsius wants to call its withdrawal company. In that recorded closed-door meeting that took place on September 8, the firm’s executives told employees about a plan that would reshape their enterprise into a sort of crypto custody firm.

The recording was initially sent to the Times by Tiffany Fong, a Celsius subscriber and by Crypto. YouTuber, Fong wrote that he received the recording via an encrypted message from an anonymous source, but included a full transcript Meeting on his website. Via Twitter messages, Fong told Gizmodo that she was keeping her opinion on the meeting until a later date.

The meeting was led by CEO Alex Mashinsky and the company’s head of innovation, Oren Blonstein. Their reopening plan would essentially turn the firm into a crypto custody firm, acting as a sort of bank for users. Crypto, while charging fees on transactions.

“We gave it a code name: Kelvin, absolute zero,” Mashinsky told the gathered staff. “So we’re basically planning on reopening with a process that doesn’t require you to rely on anything.”

Celsius did not immediately respond to Gizmodo’s request for comment. The company did not deny the veracity of the meeting transcripts in a statement to the Times, with a spokesperson telling the paper that they often hold preliminary internal meetings for several scenarios.

The company is trying to portray its current pain as a moment of tragedy that will inevitably be overcome. At the meeting, Blonstein related his own experience to the archaic story structure of “Hero’s Journey” or monomithThey inevitably stumble when they first find success, saying “and that’s the dark moment.”

According to Blonstein, getting out of that “highest test” point of the Monomith cycle is earning back customer trust.

“The basic concept of custody is that it’s your property and we’re holding it on your behalf and so that’s what we’re going to offer,” he said. “It’s the principle of being their property that we’re holding on their behalf means they’re going to get it back.”

But as much as Celsius wants to move on from bankruptcy and morale-crushing sadness layoffIt will still need to deal with scrutiny Financial regulatory agencies of 40 different states over the company withholding withdrawal back in June. the company was owed billions of dollars For its users after closing the doors on accounts. Celsius once offered overseas interest rates of up to 18% and claimed to have over 1 million customers.

Even his company is being investigated by regulators and called By previous partners, Mashinsky reportedly compared himself to brands such as Delta Airlines and Pepsi, which both went bankrupt at one point in their lifetimes.

“We now have the opportunity to reorganize,” the CEO reportedly told the gathered staff. “Pepsi filed for bankruptcy twice, right? Does that make Pepsi taste less good? Delta filed for bankruptcy, right? You didn’t blow Delta because they filed for bankruptcy? So The point is that filing bankruptcy is a test for the company — it’s a test: should you come out or disappear?”

According to the recording transcript, employees seem skeptical. An employee asked why they were going this route when their previous business was focused on Told customers that there was no transaction fee. Mashinsky replied that they were always planning to charge transaction fees, but they never had the chance.

Another employee reportedly asked: “How are you guys going to gain back our trust as employees, who saw their friends, sometimes even family get kicked out because of mistakes?” After a lengthy talk about crypto’s current failures to address the fundamentals of crypto wallet key management, Mashinsky said “we’re going to reimagine the things we do best, again: custody.” milf hostage, [and] Loan. ,

Still, even this new idea for the revival of the company is not going to happen all at once. Mashinsky said they should “everyone be prepared for a long winter,” but they are in a safe place with their Chapter 11 bankruptcy filing. The company has promised that it is working on ways to reimburse “Thousands of Celsius Customers.” The Celsius CEO said that part of his reopening plan is to “return the rest of the coins”, although this will depend on obtaining consensus among equity holders.

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