Why Celsius Fell Apart

Summary by Krater

An in-depth analysis of the collapse of Celsius Network, detailing how Alex Mashinsky's leadership, aggressive lending practices, and questionable tokenomics led to the crypto lender's insolvency.

From the video

Answers: Why did Celsius Network collapse?

• Celsius Network collapse
• Alex Mashinsky history
• DeFi lending risks
• CEL token mechanics
• Stablecoin loans
• Cryptocurrency yield farming
• BadgerDAO hack
• StakeHound
• Risk management in crypto

What it concludes

• Celsius engaged in risky practices like taking borrowed assets and lending them out multiple times to maximize yield.
• Celsius's executive team had a history of incompetence and legal troubles, including ties to money laundering charges.
• Celsius inflated the value of its CEL token through loyalty programs and bonus interest incentives with no fundamental backing.
• Celsius operated more like an unregulated, high-risk hedge fund than a secure budget bank while hiding its financial instability.
• Celsius ultimately appointed Citigroup to advise on restructuring after freezing customer withdrawals.