Thread by @theCryptera

A detailed thread about the whole #Celsius #Network scenario. 🧵

Worth your time! ⌛️❣️

"@CelsiusNetwork Don't let people suffer. I request you!"

Celsius operates just a #DeFi platform (unregulated bank) like any other where people can deposit their cryptos for some mouth watering returns. 🫶

Now you may wonder how Celsius is able to produce these returns to give you. They use your money to leverage into positions on other protocols. These leveraged positions are auto-cut at lose if & after a particular token dumps by certain % which increases the overall risk. 😶

Celsius has been the talk of the town lately for multiple reasons:
- Lost $50 million due to #BadgerDAO hack
- Withdrew $500 million from #Terra
- Their #stETH lost its peg

Now, looking and such a #bearish #blood red market, people are in a state of panic and obviously want to take out their money from #Celsius but to their horror... they don't have enough liquidity now to serve the withdrawals (BINGO!) 😂

Pretty much expected: "Celsius stopped their customer withdrawals to prevent themselves from Bank Run". 😰

#bankrun : A bank run is when many customers withdraw their deposits simultaneously over concerns of the bank's solvency (might not be functional in future)

Sad to tell you this: Celsius hold almost 1% of the entire #Bitcoin supply. Now you know the real thing! 🫡