One of Celsius Network’s earliest investors has proposed a recovery plan to help the beleaguered company. Details will be revealed when the board is ready.
Simon Dixon, the founder of Web3 investment firm Bnk to the Future, published a statement talking about “a solution using financial innovation” to resolve the problem.
While details on the recovery plan are scant, Dixon is optimistic that Celsius Network could be saved in a way similar to how Bitfinex was in 2016.
Dixon talks about how security tokens, debt, and equity were used to pull Bitfinex out of liquidation. He says that he personally invested in Celsius as well.
“As a Celsius shareholder, lender and Bitcoin evangelist and due to the short-term systemic impact on those that own Bitcoin… In 2016, Bitfinex needed a plan to recover from their hack and the company I co-founded, BnkToTheFuture.com, supported them and executed a recovery that involved security tokens, debt, and equity and gave investors a very high return for the high risk they took,” he said.
Dixon is more concerned about the community members who may have invested a large portion of their capital, which obviously would have affected them worse. He is aiming to help community members through their recovery as well as education in risk management.
Dixon is the CEO and co-founder of Bnk to the Future. He is well known for being an investor in fintech companies, and Bnk to the Future lets users invest in fintech companies, funds, and alternative financial products.
Celsius still in deep water
The fall of Celsius Network is one of the market’s biggest developments in recent years, and the market crash has been particularly damaging to the platform. The market cap sank to $290 million, and after this, it had to suspend all withdrawals.
Nansen even said that the collapse of the Celsius Network was partly responsible for the collapse of Terra. Celsius has had to hire insolvency experts as it expects to carry out financial restructuring. At the same time, a crypto influencer has launched a class-action lawsuit against Celsius.
It is not just Celsius that is affected. Babel Finance has also paused withdrawals as the market experienced one of its worst retractions.