Latest, Celsius and OpenSea Hit by Winter Crypto Storm
This time, the crypto winter has again made several crypto asset companies experience a turmoil. For example, Celsius Network LLC, or better known as the crypto lending platform Celsius Network, finally on Wednesday (13/7/2022) local time declared bankruptcy Chapter 11 (Chapter 11 bankruptcy) in New York, United States (USA).
In his statement,
Celsius said he would seek to stabilize his business by restructuring in a way
that maximizes value for all stakeholders. Launching CNBC, Celsius said he had
us$ 167 million or Rp 2.5 trillion in cash (assuming an exchange rate of Rp
15,071 per US dollar) to support the temporary operation.
Earlier, CNBC
reported the company's lawyers notified U.S. state regulators on Wednesday
night, according to a source, who asked not to be named because the process was
private.
"This is the
right decision for our community and company," said Celsius co-founder and
CEO Alex Mashinsky, in a statement, quoted from CNBC, Friday (15/7/2022). The
Hoboken, New Jersey-based company made headlines a month ago after freezing
customer accounts, blaming extreme market conditions.
Previously,
crypto hedge fund Three Arrows Capital (3AC) had filed for chapter 15
bankruptcy in New York first on July 1, 2022. Then, Voyager Digital Ltd. which
provides a cryptocurrency platform also announced that it filed for bankruptcy
Chapter 11 (Chapter 11 bankruptcy) in New York on July 6, 2022. Similarly, the
world's largest non-fungible token (NFT) platform, Opensea, cut 20% of its
workforce. The information came directly from OpenSea CEO Devin Finzer, who
tweeted a screenshot of a Slack message he sent to the company's entire staff
on Thursday.
Reporting from
Yahoo Finance, Finzer blamed the economic instability around crypto in
particular and the economy at large for employee layoffs. Such cuts, will
prepare the company in case of a prolonged decline.
"The changes
we made today put us in a position to maintain the runway runway for several
years under various crypto winter scenarios (5 years on current volumes), and
give us high confidence that we only need to go through this process
once," he said, quoted from Yahoo Finance. Meanwhile, TechCrunch noted the
company's LinkedIn page shows it has 769 employees, meaning about 150 people
lost their jobs.
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