Crypto lender Celsius has filed for Chapter 11 bankruptcy after being accused of functioning like a Ponzi scheme. Previously one of the largest players in the crypto lending space, Celsius had over 1.7 million customers and $12bn in assets under management. The company generated user engagement with interest-bearing accounts that offered yields as high as 17%, but state regulators became suspicious when withdrawals were halted, leading to an investigation into the firm. Meanwhile, Polygon, an Ethereum-based altcoin, saw its value double and rebound by over 20% after it was announced that subsidiary Disney was partnering with the platform on immersive NFTs and augmented reality experiences.
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Celsius Network Files for Chapter 11 Bankruptcy
Celsius Network, one of the largest players in the crypto lending space, has officially filed for Chapter 11 bankruptcy. The company was known for generating high yield staking options to the average investor, but the platform collapsed under its own weight due to its unbelievable returns. With the company being accused of functioning like a Ponzi scheme, its actions have caused overall trust in the crypto space to plummet.
Polygon Teams Up with Disney
Walt Disney has announced a major partnership with Polygon on the Ethereum network paving the way for the future of immersive experiences, NFTs, and augmented reality through the Disney Accelerator program. Polygon is shaping up to be one of the hottest altcoins to watch for the next bull run, and is already showing significant growth in price since June 2021 lows.
Is Binance Burning Tokens?
Binance, a leading platform in the crypto space, has continued to show its strength during a time where crypto investors need it the most. With a reduction in supply of Binance native tokens, the BNB Auto-Burn has completed the reduction of nearly 1.96 million tokens valued at $444 million. This deflationary measure helps protect investors during market turmoil and serves as a great reminder for us in the crypto space to zoom out when in doubt.
Wrap-Up
Crypto lending platform Celsius Network’s downfall serves as a cautionary tale for future companies to avoid similar issues. The partnership between Walt Disney and Polygon brings hope to investors in the crypto space, and Binance continues to show its strength with its deflationary measure of burning tokens. With the industry focused on long-term solutions and infrastructure growth, there is much to look forward to in the future of crypto.
