Home
News
- Celsius’ bankruptcy filing is unsurprising says Tezos co-founder Kathleen Breitman.
- Breitman calls Three Arrows Capital’s insolvency uniquely bad.
- The second and third-order effects of the Terra Collapse could still be found in some crypto firms.
Tezos co-founder Kathleen Breitman believes Celsius’ bankruptcy filing didn’t come as a surprise since in the long run such business models are sustainable. Tezos is a decentralized layer 1 blockchain.
Celsius Insolvency Not Surprising For Experienced Players: Breitman
For the uninitiated, Celsius filed for voluntary Chapter 11 bankruptcy protection. The move came exactly a month after it halted withdrawals and redemptions, owing to liquidity crises caused by extreme crypto market conditions.
In a statement to Bloomsberg, Breitman stated Celsisus going bankrupt is completely unsurprising for people like her who possess years of experience in the industry. Breitman says celsius had laws that were completely opposite to what blockchain technology stands for. The co-founder also says that some of the recent events were even predictable. Also acknowledging that some others were less predictable. Commenting on Three Arrows Capital’s Bankruptcy, Breitman said what happened to the platform was “uniquely bad.”
ALSO READ – Central African Republic: first to recognize bitcoin as legal money
Consequences Of Terra Collapse
3AC, one of the largest venture capital (VC) firms in the crypto sphere, backed many popular blockchain startups and projects. Ethereum , Polkadot, Solana, Polkadot, Solana and Terra, are among them. The melodramatic Terra collapse led to the ultimate collapse of Three Arrows Capital (3AC) in May. The crash resulted in huge sell-off in the market with crypto assets prices dropping to new lows. The hedge fund failed to meet margin calls amid the crypto bloodbath, leading to BlockFi conducting forced liquidation.
The second and third-order effects of the Terra Collapse are still seen in some crypto firms. To which Breitman says are shakeouts from “things that just wouldn’t have worked.”At last, she concludes that a protocol or business can not be estabished and sustain on the basis of the therory “that numbers will always go up.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
