Quote from: fortuner on Today at 10:55:57 AM

Quote from: CarlB on Today at 09:37:28 AM

Quote from: franky1 on Today at 09:22:39 AM

Quote from: CarlB on Today at 09:08:29 AM

Quote from: franky1 on Today at 08:55:58 AM

Quote from: CarlB on Today at 08:46:48 AM

Thank you for your explanation. I think you are right, but does this mean Celsius thinks Bitcoin will dip to the 3k area in the near future?

no. its just math..

if they have $114m debt. to customers.
and they now have $2b from G.Sachs
then thats a simple maths X factor that brings position down from $21k threshold down to a lower threshold before defaulting.

And where does all this put customers whose funds are locked up? I mean, what's their likely end-game? As soon as they are opening up withdrawals, people will withdraw their funds immediately. Celsius reputation is destroyed and i don't see any viable option to restore it. What is your opinion?

the customer debt has been pretty much made whole again. celsius shouldnt really owe customers anything.
celsius now owes g.sachs

celsius now has enough coins to honour the sidechain locks of customers

..
my opinion.
(i have not gone through all the numbers so treat this as a rough guess, dont query the numbers. query the methodology)

celsius had 21,000 coins locked up to the sidechain(customer locks) but had mismanaged and only had ~15k to allow for withdrawal which caused them problems. of a $114m deficiit(pencil math of 5k coin)

celsius then took on another deal with G.sachs where by G.sachs gave them $2b. which was used to (i guess) buy ~100k coins
celsius can now make customers whole as there are alot of coin now free floating to honour withdrawals. and the remainder is then locked up as new collateral (not the customer stuff) with a escrow with g.sachs who is set a contract for a lower liquidation number should celsius run into trouble and default on g.sachs obligations

.. end goal
.. a waiting game for the g.sachs/celsius partners

waiting for bitcoin price to move up.. lets imagine it went to 2x ($39k)
that 95k coin spare becomes worth $3.7bill so celsius pays off g.sachs $2b+ interest/profit.. and celsius keeps the remainder as free money for celsius.
or
g.sachs stays in partnership and they both share the profits.. or they keep it in coin form and wait for a different higher number

Thanks for your opinion. Truly appreciate it. Hopefully people take it as a lesson bc "Not your keys, not your coins", even if they get lucky this time.

Maybe this time they are profitable, but in the future people will definitely think about it a second time and don't want to be trapped in things that are detrimental to them, right?
So if some of us can take a good lesson for the future, of course it is a very valuable thing for us together.

Absolutely.