So in todays, video on to break down this situation, for you update you on what is happening with key crypto lenders course, including talking about whats happening with voyager block, fi and celsius. Of course, what this all means for crypto my names lark, i make videos on investing. If you do like that topic, then please, subscribe to the channel also hit that thumbs up button to. Let me know you do enjoy this kind of content. Okay, so lets just get straight into this. In the last few weeks, many major crypto lenders have basically crashed and burned. The first big one, of course, was celsius more on them later, but we also saw a bunch of other lenders in the wake of celsius running into trouble actually hitting the rocks as well. Uh babel finance halted, withdrawals shortly after celsius did a platform called coin flex. Just halted withdrawals yesterday, rumors are also circulating about hodl, not having lost a lot of money during the ust collapse. Nexo is actually one of the few lenders that has not collapsed yet not saying that nexo has problems. We havent seen any indication of that yet, but does that mean you should run out and yolo the rest of your money into a nexo account? No just because nexo hasnt broke yet doesnt mean that it wont. I think now is the time for extra caution. I would personally stay far away from all of these centralized lenders right now and im somebody who used to use block fight until they lowered the rates i used celsius.

Until you know all this crap happened over the next few months. Maybe well see some of these things working themselves out, but you know i would think twice about putting funds in these platforms again, even if things do work themselves out, because we have learned so much during the collapse of all these about how much theyve lied and Lied and lied about the risks that they were taking with our money. If you are still in a lending platform that allows you to withdraw your money, then maybe just consider moving your funds off of there until the storm blows over. You might miss out on a few months of interest, even miss out on six months of interest until all this settles down, but you also might not lose everything. Then, of course we come to the crypto bailouts. Voyager apparently had a half billion dollar under collateralized loan to three hours: capital, the crypto hedge fund, that just collapsed. They have now issued a notice of default on this incredibly huge position to three arrows. You have to ask like what was the risk management involved here? Why did they have such a crazy big loan anyway? It seems that this one loan, basically screwed voyager, because guess who had to step in ftx one of the biggest exchanges in crypto they stepped in they bailed the mountain. Similarly, blockfi has gone from basically pain to pain, firing staff being hit with huge fines from uh the sec in usa gambling and losing on their grayscale bitcoin bet, which was massively painful, trying to raise funds at a third of their previous valuation and failing to do So and finally, of course, getting a bailout from ftx, which will likely be an actual takeover of blockfy.

Although key investors, morgan creek, are trying to raise funds to counter this offer, not that that really matters unless youre, an equity investor by the end of the bear market seems like ftx, will have bought up. Many of the distressed, centralized lending platforms. Ftx just keeps getting bigger good news for voyager and blockfy users, though anyway real quick before we get into celsius every single week, my team and i write the wealth mastery investor report. It comes twice weekly to your inbox. We talk about d5 were talking about. Nfts talk about altcoins and much much more. Our subscribers love the newsletter im sure you will too, and you can actually sign up for free using the link down below in the description. Okay, now lets talk about celsius. This is the big daddy of them and what we know so far regarding the mess that this has caused. So, as we all know, celsius stopped withdrawals back on june 13th, citing extreme market conditions. Now a lot of allegations have been flying around the rumor mills of social media and, of course, these kind of situations are incredibly stressful. If you have funds stuck on celsius right now, ouch its just it sucks in every way possible, and we dont really know whats going on behind the scenes at the moment. But some people, of course, do want to say: celsius was always just a scam. Was a ponzi – and i dont really believe that, but i do think that celsius took on way too much risk and was being pretty damn irresponsible with our money, which is obviously not what we signed up for when using the service we signed up to a lending Service somebody wants to borrow assets; they lend it out on our behalf, take a you know fee in the middle, but actually they were operating more like a degenerate hedge fund, shaping into d5 and all kinds of crazy stuff with their money now look there are talk Of rescue plans right now, but you also have the vulture funds circling around what the heck is really going on.

Well, i think theres really two possibilities, assuming it wasnt all just big scam, fraud and honestly, i have no idea which of these two is true, but rumors are circulating that either one could be true sources say sauces anyway. First option celsius has a liquidity problem. That is to say that celsius does have your money. They just dont, have it right now now they could be in a variety of fixed loans or products with withdrawal periods. So when that bank runs started a few weeks ago, basically they just didnt have the funds available to meet those obligations. Theres also the problem with their staked ethereum position, which is what led me to be paranoid enough to take money off of the exchange off of celsius in the first place. So basically, they currently hold over 400 000 staked ethereum, and currently, that is trading at around a four percent uh difference between that and the price of ethereum. More importantly, there is very little liquidity for celsius to be able to exit that position without incurring huge losses. All those users who deposited ethereum and want to take ethereum back off of celsius. They cant right now because its not enough liquidity for celsius to exit their massive stake. Ethereum position without causing huge losses which celsius simply cannot absorb right now, not after their other huge losses, especially theyve occurred over the last year. Things like the last 50 million dollars worth of bitcoin in badger, dow.

They lost 27 000 ethereum and a staking service called stakehound, so theyve taken some big hits already, and this, of course, was the nail in the coffin anyway. The good news is: if this is all just a liquidity issue, then, when the market settles down, withdrawals should open up again, your funds should be okay. Let us hope, though, that is not option. Two option: two: is that celsius simply does not have the money to pay users back. This is the scenario in which we see a bankruptcy become a very, very likely scenario and regular users stand to lose well, potentially, everything which is horrific and absolutely sucks, because in this possibility, you as a regular depositor our last person in line to get any money Back all the other investors and depositors and debtors and stuff come way before you. You have the vulture funds out there sharpening their beaks and the possibility this could happen. Goldman sachs are rumored likely just a rumor, potentially not true, but still floating around social media. To raising two billion dollars to buy a forthcoming celsius bankruptcy and, of course, the resulting fire sale of customer assets, there have been other reports of celsius, hiring restructuring, aka bankruptcy companies to help them through the process here, sadly, celsius, keeping complete radio silence, im sure the Lawyers have told them to shut the heck up, which is terrible for investors, who are left, asking questions and getting no answers anyway.

Those arent the only options on the table. We also have simon dixon, who is proposing a deal similar to what his company bank to the future did for bitfinex back in 2016. After they were hacked for 120 000 bitcoin, everybody said thats, the end bitfinex is done, itll never recover, but users are actually given equity, theres, equity, paid out dividends and in the end they may even get their bitcoin back, which is pretty crazy. All the time bit. Finex continued to be a top 20 bitcoin exchange since the time of the hack, so people who lost initially actually won big time in the long run. Maybe this is the kind of solution thats going to save celsius users, assuming of course, that celsius is, you know, actually not just having a liquidity problem but is actually having an insolvency problem anyway, its probably a while before we know anything concrete, but the wheels are Turning in the background, things are happening, we just dont know a lot of whats happening because of the radio silence. I obviously continue to hope for the best of anybody who still has money stuck in celsius and, of course, im. Sorry, if you ended up there because of me, i was using the service for a long time. I liked the service and then this crap happens anyway long story short most of the centralized lenders right now are in bad trouble. Some most will not probably survive the bear market, so if you still have money on whatever centralized lender, you are using then consider what the heck youre doing take that money out.

You can always come back later, but with so much bad stuff happening. So many lenders going under facing bailouts, why take the risks right now anyway? I wish i knew more about what was happening at celsius. Those are kind of what we know so far and i will keep you updated as we learn more but thats where the situation is right now, anyway, your question for today. What do you think about the celsius situation? Do you think? Well, they were always just a big scam, or do you think its just well theyre just having liquidity problems? They have the money they just dont. Have it right now or they actually bankrupted, they dont.