Celsius Update (Patreon)

Insolvency is generally defined in law as 'being unable to pay debts as they becoming due'. This means there are two 'types' of insolvency.

The first is 'cash flow insolvency' which means Celsius simply have more outflows than they are able to support. This was clearly caused by the orchestrated attacks on Twitter. No need to say any more there - a clear bank run. It is a timing issue to preserve liquidity as Celsius may have crypto staked elsewhere like STETH.  STETH peg is still .95 and holding. Per @wassielawyer CelsiusNetwork is in this position and so the halt on withdrawals / transfers is simply to buy time until sufficient assets become liquid again. 

The second is if they are 'balance sheet insolvent',  Alex did say to me they were not exposed to LUNA - but we will find out one day what the truth is.  They clearly have exposure to STETH but that so far is only a 5% hit 95% is intact.  Note STETH is no LUNA - it is a time deferral until ETH goes to POS....

In a text back from Alex last nite - asking him what the truth was and if our crypto was safe he said "Yes we are. We. Still issue loans and earn yield"

I asked him for those like me who cannot withdraw are we safe - no response.