Celsius lost approximately $1 billion in consumer cash before filing into bankruptcy. Now, the CEO is attempting to recast the corporation as a once-great enterprise.
By rebranding as a supplier of custodial services, Celsius management feels the firm may go on a redemptive path.
The New York Times reports that the CEO of a crypto loan business, Alex Mashinsky, proposed relaunching the company on September 8 with an emphasis on crypto custody. The plan calls for rebranding Celsius as “Kelvin,” another temperature measurement.
According to the article, Mashinsky likened his planned pivot to those implemented by globally renowned corporations, such as Pepsi and Delta Airlines, when they suffered their own bankruptcy. “Does it diminish the flavor of Pepsi?” Apparently, Mashinsky questioned staff. “Delta filed for bankruptcy. Do you refuse to fly Delta since they declared bankruptcy?”
Oren Blonstein, chief compliance officer at Celsius, allegedly supported Mashinsky’s proposal and compared the company’s recent difficulties to a “hero’s journey,” a familiar literary cliche. After an initial accomplishment, they slip, fall short in some manner, and experience this terrible period,” he said.
Once one of the top crypto lending firms, Celsius halted customer withdrawals at the beginning of June, citing “extreme market circumstances.” Court filings indicated that when the business ultimately filed for bankruptcy, it had a $1.19 billion hole in its financial sheet, which was mainly caused by Mashinky’s directionally trading Bitcoin with client cash against the advice of senior traders at the firm.
This is a circumstance neither Pepsi nor Delta Airlines have ever encountered. Blonstein forgot to mention this information when he said that the corporation “fell short in some manner.”
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