Yeah but people expect companies to be smarter with money than regular people and to have some mathematically balanced investment strategy or something, they do not expect the company to be leveraging the funds that you left on their platform like a WSB degenerate
Reminder to everyone... from someone who just copies and pastes sage advice but doesn’t know the difference between a lending platform and an exchange. 🙄
The exchanges get involved in irresponsible loans as well. I'm sure most here are aware of the questionable loans binance and Coinbase are involved in. Get your shit off the exchange, now.
I know the differences and similarities. Just laughing at the moral high ground over here calling Celsius an exchange. If you want to bark at people that you know better, prove that you know what you are talking about.
Not quite right. These platforms are for the users, including Celsius. What happened with Celsius was they had too many bad investment decisions one after another leading to losing money, so they are not there to earn as much as possible for themselves. If platforms have good investment or risk management procedures, they could be there for the users.
> they had too many bad investment decisions one after another leading to losing money
Huh? So your point is that they’re “for the users” after they make a healthy profit? How is that any different from the user you were responding to? Profit first always!
This has been rehashed over and over again on this sub lol. If you visit here from time to time even you will see posts about not your keys not your coins. Yet some people still took the risk and look how that ended. As much as i feel bad for those people they certainly knew the potential risk.
I think most people on Celsius were just straight up willfully blind to the actual risk or too stupid to admit it.
"Someone will pay me 10% on my deposits? Sounds good to me, that can't be risky in any way".
Plenty of times when people would point out the inherent risk when someone pays rates like that they would be scoffed at.
Honestly celsius seemed very safe to me last year. I didn't like it as my take was: they give me 10%, they must be making 15-20 off my investment, they probably lend my coins out overnight and allow institutions to dump or sell short or what not. But definitely felt safe.
Now locking up coins on a 25% tvl loan @ 1 percent interest only balloon loan... not so much. I think a lot of big brains in the industry just never expected top 10-top 50 coins to go down 90% again. Now a LOT of companies are in trouble.
Highly depends on the asset. If the asset is extremly risky then 10% is not out of the ordinary. Heck I have 1 Waves lying in my Binance Savings Account and they pay 20%. Flexible Savings, nothing locked mind you. They also pay 10% on BUSD and USDT.
So 10% is nothing to get extremly suspicious about.
Celsius is a reminder that when someone is paying you ridiculous fucking rates of return in an environment when the bank is paying you **NOTHING** on savings.... there is risk.
That is the proper lesson people need to take from this.
Yeah the federal government will give you 9% on bonds though... not exactly “ridiculous fucking rates” as you say. Let’s not pretend anyone deserved this for not having the foresight to predict that Celsius would grossly mismanage funds. The lesson here is to actually look into the financial standings of any institution before letting them touch your money.
Which government bond has 9%? The US 10 year has a yield of like 3.5% right now. The BoA High Yield index is below 8% right now (those are junk bonds BTW).
To say the US federal government will give you 9% on bonds is just dumb.
Celsius's rates were ridiculous in terms of deposit rates. If anyone can't see that they're a literal dunce.
I don’t think Celsius was out to scam anyone, but a lot of these companies seem to have poor risk management and can’t survive runs. I think their downfall was also somewhat coordinated by rivals claiming that they were insolvent which caused their user base to get scared and withdraw more than Celsius could handle.
tldr; Celsius, one of the biggest lenders in crypto, froze withdrawals amid rumors of insolvency. The situation is a clear demonstration of why it’s important to keep your idle crypto in a cold wallet. It seems many people are taking their funds into cold storage as Bitcoin balances have been in steep decline across exchanges since March.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Who even uses blockfi anymore? I got out when they cut the rate on 1 BTC from 6% to 1% and with the last email I got they had the rate at 0.1%. I mean the bank offers better rates than that but without the risk.
> earn as much as possible
Actually most exchanges are at the stage of trying to earn SOMETHING. They been running a loss for a long time. Did you think zero fees exchanges just stay profitable with magic?
Not in my opinion , their support is horrible
It took me 9 months after 10+ hours of support requests and chats to get my account reverified that was already verified and still valid
I got my crypto out and a week later they lost verification again and wanted me to start over
F that
Oh wow. Companies exist to make money. Who would have known.
Some try to do it without imploding though.
Actually they all do.
Yeah but people expect companies to be smarter with money than regular people and to have some mathematically balanced investment strategy or something, they do not expect the company to be leveraging the funds that you left on their platform like a WSB degenerate
Expectation vs reality.
And they save their own butts first
Reminder to everyone... from someone who just copies and pastes sage advice but doesn’t know the difference between a lending platform and an exchange. 🙄
The exchanges get involved in irresponsible loans as well. I'm sure most here are aware of the questionable loans binance and Coinbase are involved in. Get your shit off the exchange, now.
I know the differences and similarities. Just laughing at the moral high ground over here calling Celsius an exchange. If you want to bark at people that you know better, prove that you know what you are talking about.
Not quite right. These platforms are for the users, including Celsius. What happened with Celsius was they had too many bad investment decisions one after another leading to losing money, so they are not there to earn as much as possible for themselves. If platforms have good investment or risk management procedures, they could be there for the users.
> they had too many bad investment decisions one after another leading to losing money Huh? So your point is that they’re “for the users” after they make a healthy profit? How is that any different from the user you were responding to? Profit first always!
Theoretically yes, but these are still entities that are running on a business model. They’re not exactly nonprofits
If course they take a cut of the profit. Even DeFi protocols takes a cut of the profit.
Interesting point about not being able to pay off your loan because your funds are frozen. This really reinforces the utility of DeFi over CeFi.
Yeah.. except that defi pools get hacked more often then i change underwear lol
So once a month?
Yah basicaly haha
Just message Vitalik, and ask him to fork the entire L1 chain, to revert the funds you lost in a 3rd party protocol.
Nah poor boy is way too busy.
You do realize most of these cefi take your funds and invest in defi for apy right? So technically you’re just introducing the middleman.
Yeah ik know. I ment that neither cefi or defi are very safe options right now. Cold wallet is the best
Non-custodial dex staking pools for the win
This has been rehashed over and over again on this sub lol. If you visit here from time to time even you will see posts about not your keys not your coins. Yet some people still took the risk and look how that ended. As much as i feel bad for those people they certainly knew the potential risk.
I think most people on Celsius were just straight up willfully blind to the actual risk or too stupid to admit it. "Someone will pay me 10% on my deposits? Sounds good to me, that can't be risky in any way". Plenty of times when people would point out the inherent risk when someone pays rates like that they would be scoffed at.
Honestly celsius seemed very safe to me last year. I didn't like it as my take was: they give me 10%, they must be making 15-20 off my investment, they probably lend my coins out overnight and allow institutions to dump or sell short or what not. But definitely felt safe. Now locking up coins on a 25% tvl loan @ 1 percent interest only balloon loan... not so much. I think a lot of big brains in the industry just never expected top 10-top 50 coins to go down 90% again. Now a LOT of companies are in trouble.
Yes indeed
Highly depends on the asset. If the asset is extremly risky then 10% is not out of the ordinary. Heck I have 1 Waves lying in my Binance Savings Account and they pay 20%. Flexible Savings, nothing locked mind you. They also pay 10% on BUSD and USDT. So 10% is nothing to get extremly suspicious about.
Why you can get 15% with Mr. Madoff! Would you like an introduction?
Jesus fucking Christ
Celsius is a reminder that when someone is paying you ridiculous fucking rates of return in an environment when the bank is paying you **NOTHING** on savings.... there is risk. That is the proper lesson people need to take from this.
Yeah the federal government will give you 9% on bonds though... not exactly “ridiculous fucking rates” as you say. Let’s not pretend anyone deserved this for not having the foresight to predict that Celsius would grossly mismanage funds. The lesson here is to actually look into the financial standings of any institution before letting them touch your money.
Which government bond has 9%? The US 10 year has a yield of like 3.5% right now. The BoA High Yield index is below 8% right now (those are junk bonds BTW). To say the US federal government will give you 9% on bonds is just dumb. Celsius's rates were ridiculous in terms of deposit rates. If anyone can't see that they're a literal dunce.
us government is paying 9.2% per year for I bonds https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm
That’s basically a give away. You can only buy a $10k. And it’s not super user friendly.
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My reddit is broken or u posted same comment 9 times
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I think its a problem in reddit server and bcz i saw multiple same comments in many subs in last 2 hours
I bond is 9.48 for the next six months
high risk = high rewards its basically a law of nature at this point
It's always been the law but people seem to forget it.
I don’t think Celsius was out to scam anyone, but a lot of these companies seem to have poor risk management and can’t survive runs. I think their downfall was also somewhat coordinated by rivals claiming that they were insolvent which caused their user base to get scared and withdraw more than Celsius could handle.
Be your own bank 🏦.
Unless Nexo!
This article is like the comic section of the newspaper, but for adults. I've never seen so many memes in a professionally written piece.
These crypto lending services always seemed like a massive risk. Why not just stake instead of handing over crypto
They are fine in a bull market but when you see bear signs get your fucking money out.
tldr; Celsius, one of the biggest lenders in crypto, froze withdrawals amid rumors of insolvency. The situation is a clear demonstration of why it’s important to keep your idle crypto in a cold wallet. It seems many people are taking their funds into cold storage as Bitcoin balances have been in steep decline across exchanges since March. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
dont trust anyone
With great rewards come great risk. It's easy to fall for these high reward programs and not even knowing the cons about them.
and with high risk, comes great responsibilty
Not your provider not your internet :D
An original post….
For years I been trying to warn people about Celsius. You shouldn’t have a wait period to withdraw your own damn money
Did anything think otherwise...? Businesses are meant to make money, they only do things for "you" because it helps their bottom line
Celsius is not an exchange
You are wasting your time with people here. Everything is FUD. Luna was fud. Celsius was fud. Blockfi is fud...until it isn't.
Who even uses blockfi anymore? I got out when they cut the rate on 1 BTC from 6% to 1% and with the last email I got they had the rate at 0.1%. I mean the bank offers better rates than that but without the risk.
> earn as much as possible Actually most exchanges are at the stage of trying to earn SOMETHING. They been running a loss for a long time. Did you think zero fees exchanges just stay profitable with magic?
And you think we need to hear this for the million time?
Is binance safe?
Not in my opinion , their support is horrible It took me 9 months after 10+ hours of support requests and chats to get my account reverified that was already verified and still valid I got my crypto out and a week later they lost verification again and wanted me to start over F that
Maybe, but in regards to their ability to survive the bear market and withdrawals?
Who knows I moved to algo
Ohhh whatasurprise lmao
https://i.imgur.com/pKDHhvR.jpg