{"id":465539,"date":"2022-06-20T06:59:27","date_gmt":"2022-06-20T03:59:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\/"},"modified":"2022-06-20T06:59:27","modified_gmt":"2022-06-20T03:59:27","slug":"celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\/","title":{"rendered":"# Celsius recovery plan proposed amid community-led short-squeeze attempt"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a406357ed00c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a406357ed00c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\/#%E2%80%9D_Celsius_recovery_plan_proposed_amid_community-led_short-squeeze_attempt_%E2%80%9C\" >&#8221; Celsius recovery plan proposed amid community-led short-squeeze attempt &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\/#The_Bitfinex_Solution\" >The Bitfinex Solution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\/#Gamestop-style_short-squeeze_brewing\" >Gamestop-style short-squeeze brewing<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Celsius_recovery_plan_proposed_amid_community-led_short-squeeze_attempt_%E2%80%9C\"><\/span>&#8221; Celsius recovery plan proposed amid community-led short-squeeze attempt &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMDA2ZDc0YTMtNTA2OC00ZDE3LThjNDItOGJkYTI0NDM2ZTRjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Celsius\u2019 lead investor BnkToTheFuture and its co-founder Simon Dixon have offered to assist the network by deploying similar \u201cfinancial innovation\u201d used in 2016 to save cryptocurrency exchange Bitfinex from liquidation.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FyF1Qaw6ZE\">https:\/\/t.co\/FyF1Qaw6ZE<\/a><\/p>\n<p>\u2014 Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SimonDixonTwitt\/status\/1538630994189762560?ref_src=twsrc%5Etfw\">June 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAlthough the statement from Dixon on Saturday, June 18, did not include specific details of the recovery plan offered to the Celsius\u2019 board and CEO Alex Mashinsky, Dixon noted it would be similar to the one offered to Bitfinex after its hack in August 2016, which he claims was resolved within nine months.<\/p>\n<blockquote><p>\u201cI believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors.\u201d<\/p><\/blockquote>\n<p>Dixon noted that as a Celsius shareholder and lender, and due to the \u201cshort-term systemic impact on those that own Bitcoin,\u201d he was \u201ckeen to support Celsius with a recovery plan,\u201d\u00a0<\/p>\n<p>\u201cIt\u2019s my position to offer solutions as we have the experience, licenses, and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to do so,\u201d he stated.<\/p>\n<p>BnkToTheFuture is a global online investment platform that allows investors to invest in financial technology companies, funds, and other new alternative financial products. The platform touts a network of over 85,000 qualified investors. In June 2020, Celsius launched an equity offering with the investment platform, raising $20.46 million through 1039 investors. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Bitfinex_Solution\"><\/span>The Bitfinex Solution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Dixon\u2019s plans for Celsius take inspiration from his firm\u2019s solutions in August 2016, after Bitfinex announced it lost <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately 120,000 Bitcoin (BTC) in a cybersecurity breach, causing a loss of around $72 million of customers\u2019 funds at the time.<\/p>\n<p>Rather than pursuing liquidation proceedings, Bitfinex instead came up with an innovative recovery plan, which involved \u201cpromises to repay\u201d in the form of BFX tokens to customers, representing the value of the money lost in the hack. <\/p>\n<p>These tokens were tradable on the open market or could be held later for future repayment of $1 per token, and effectively allowed customers to speculate on the company\u2019s recovery.<\/p>\n<p>Later in the month, BnkToTheFuture added to the solution by working with Bitfinex to allow customers to convert their BFX tokens into equity in the company.<\/p>\n<p>Around seven months later, BnkToTheFuture reported that the plan had been working, with victims recovering between 75% to 100% of their funds through the various measures available to them. <\/p>\n<blockquote><p>\u201cIn 2016, Bitfinex needed a plan to recover from their hack and the company I co-founded, BnkToTheFuture.com, supported them and executed a recovery that involved security tokens, debt, and equity and gave investors a very high return for the high risk they took.\u201d <\/p><\/blockquote>\n<p>Dixon did not confirm whether his recovery plan would work the same way with a token, only that it would be solved using similar innovative methods. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gamestop-style_short-squeeze_brewing\"><\/span>Gamestop-style short-squeeze brewing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>However, there\u2019s also an unofficial community-led recovery plan which appears to be gaining traction on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> under the hashtag #CELShortSqueeze.<\/p>\n<p>The movement is attempting to force short-sellers of the Celsius token to cover their short positions by purposefully driving up the price of the CEL token through the mass purchase and withdrawals of the CEL token from various exchanges.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Big <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CELShortSqueeze?src=hash&amp;ref_src=twsrc%5Etfw\">#CELShortSqueeze<\/a> Explained:<br \/>1. Buy CEL on FTX.<br \/>2. Move tokens to MetaMask.<br \/>3. Connect to 1inch and set sell limit order at $100. <br \/>4. RT. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/okG0tTvumZ\">pic.twitter.com\/okG0tTvumZ<\/a><\/p>\n<p>\u2014 Celsians (@CelsiansNetwork) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiansNetwork\/status\/1538548134799986689?ref_src=twsrc%5Etfw\">June 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Short-selling is an investment strategy in which an investor borrows shares and immediately sells them, with the aim of buying them back later at a lower price and pocketing the difference. It allows an investor to profit from the decline of a share or asset.\u00a0<\/p>\n<p>Short-squeezing occurs when a shorted asset instead rises in value, which forces short sellers to buy back the shares they initially sold in order to keep their losses from mounting. However, buying back shares when the price is rising can cause further upward price movements, which can then further squeeze out short-sellers. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto Biz: Crypto carnage pushes Celsius, Three Arrows Capital closer to insolvency, June 9-16<\/em><\/strong><\/p>\n<p>The same strategy was initiated by users of the subreddit r\/wallstreetbets in the January 2021, which saw stocks of the American video <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> retailer reach highs of almost $500 per share, around 25 times the valuation at the beginning of the month.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/16 Let\u2019s wait to hear an official statement from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiusNetwork?ref_src=twsrc%5Etfw\">@CelsiusNetwork<\/a>. But if that statement is positive, then this is GameStop, AMC and Wall Street Bets all over again (the sequel.)<\/p>\n<p>These are my thoughts on the short sellers. I can only speak for that part of the attack on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/BbnmeBR1RT\">https:\/\/t.co\/BbnmeBR1RT<\/a><\/p>\n<p>\u2014 Otis \u24d2  \u26a1\ufe0f (@otisa502) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/otisa502\/status\/1537170718001078274?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Celsius dominated headlines earlier this month after the popular crypto lender paused withdrawals due to \u201cextreme market conditions.\u201d\u00a0<\/p>\n<p>The halting of withdrawals have locked customers out of their money, with many fearing that funds locked up on the platform may never again see the light of day, should the platform go belly up. <\/p>\n<p>On June 20, Celsius released a statement to the Celsius community, noting that its objective continues to be stabilizing its liquidity and operations. <\/p>\n<blockquote><p>\u201cIt has been one week since we paused withdrawals, Swap, and transfers. We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time.\u201d<\/p><\/blockquote>\n<p>The platform said it aims to maintain an open dialogue with regulators and officials and will continue to find a resolution. Meanwhile, the platform will be pausing its Twitter Spaces and Ask-Me-Anythings (AMAs).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Please find our latest note to the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiusNetwork?ref_src=twsrc%5Etfw\">@CelsiusNetwork<\/a> community here <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/uIoaXbmeF2\">https:\/\/t.co\/uIoaXbmeF2<\/a><\/p>\n<p>\u2014 Celsius (@CelsiusNetwork) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CelsiusNetwork\/status\/1538673050991808512?ref_src=twsrc%5Etfw\">June 20, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Celsius (CEL) is priced at $0.636 at the time of writing, down 92% from its all-time high.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/celsius-recovery-plan-proposed-amid-community-led-short-squeeze-attempt\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Celsius recovery plan proposed amid community-led short-squeeze attempt &#8220; Celsius\u2019 lead investor BnkToTheFuture and its co-founder Simon Dixon have offered to assist the network by deploying similar \u201cfinancial innovation\u201d used in 2016 to save cryptocurrency exchange Bitfinex from liquidation. I believe traditional finance will not have a timely solution for Celsius as we saw&#8230;<\/p>\n","protected":false},"author":1,"featured_media":465540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMDA2ZDc0YTMtNTA2OC00ZDE3LThjNDItOGJkYTI0NDM2ZTRjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[130515,74868,130514],"class_list":["post-465539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bnktothefuture","tag-defi","tag-simon-dixon"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/465539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=465539"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/465539\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/465540"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=465539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=465539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=465539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}