Kelvin to save Celsius – While the company continues to make the news, Alex Mashinsky has just announced a recovery plan for Celsius. The company that was worthless will it be able to regain value?
Alex Mashinsky announces Celsius recovery plan
On September 13, 2022, the New York Times published a report on announcements of Mashinksy. Indeed, the latter declares to have found a recovery plan for Celsius appointed Kelvin. The director of the company is therefore preparing a return of the latter according to what he has announced to his employees. The company had filed for bankruptcy on July 14, 2022.
As a reminder, the collapse of the crypto market due to the UST crash had dragged the company down. This sequence had precipitated the collapse of the market by causing the disappearance of 1,000 billion dollars. This disappearance had ruined the thousands of investors who had bet on Celsius.
The New York Times received a recording of Mashinsky’s announcement and Oren Blonstein to their employees about this relaunch. On September 8, the two leaders explained that they wanted to focus on the custody of cryptocurrencies. The Kelvin project therefore wants to focus on holding by charging fees on certain types of transactions. The name Kelvin obviously comes from the unit of temperature.
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What do employees think of this Celsius recovery plan?
The skeptical employees challenged Mashinsky, 56. And he didn’t flinch, comparing his rebuilding process with famous brands that had already gone bankrupt, like Pepsi between 1923 and 1931.
“Does Pepsi taste worse? Delta has filed for bankruptcy. Aren’t you flying with Delta because it went bankrupt? »
Mr. Mashinsky
Alex Mashinsky CEO of Celsius Network
The company’s employees and managers meet frequently to discuss the various possible scenarios according to the company’s spokesperson. Indeed, Celsius is attempting a revival at a time of transition for the cryptocurrency industry. Meanwhile the start-ups with the reckless practices that triggered the crisis are trying to regroup. And others are embarking on new crypto adventures like Do-Kwon, founder of the Luna cryptocurrency.
What will happen to Celsius?
The fate of the company is actually no longer really in Mr. Mashinsky’s hands. In effect, any decision must first be approved by New York Federal Bankruptcy Judge Martin Glenn. He oversees the process. Thus the result could take several forms including the repurchase of certain parts by a buyer.
During a meeting with his employees, Mashinsky said it is working with a legal entity that represents the company’s creditors. This cooperation is aimed at Celsius’ takeover plan. According to him, the Committee of Unsecured Creditors (UCC / Committee of Unsecured Creditors) and the rest of the community have asked for the continuation of the project. Services rendered would be required such as loans, staking, custody and the like.
Kelvin does not warm up customers
However, the members of the committee are wondering, according to a person familiar with the case, about the continued presence of Mr. Mashinsky and on the feasibility of the Kelvin project.
If the rescue plan remains unclear, Mr Mashinksy said he could imagine charge customers for access to a special highly secure cryptocurrency wallet. A speech that contradicts the business model initial based on a free service as part of a traditional anti-finance argument.
Regarding reimbursement of customers claiming their funds. Mashinsky said the company is planning “a one-stop crypto solution” to compensate customers, but he declined to go into specifics.
Mashinsky therefore seems determined to relaunch the Celsius project with the Kelvin plan, but he is struggling to convince his creditors. Indeed, the Kelvin project seems vague and the way in which he will reimburse his customers seems to be witchcraft. It is not surprising that the leader is struggling to convince after the revelations of lies about the financial health of the company.
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