Celsius Network Is On The Verge Of Collapsing – Dennis Porter

Celsius Network is On The Verge of Collapsing

The Bitcoin maximalist, Dennis Porter, said that he is convinced that the Celsius network is “on the verge of collapsing”. Porter made the revelation in a May 28 post on Twitter, where he wrote:

“I’ve always been concerned about Celsius and I’ve consistently warned people against handing over their Bitcoin to them so Celsius can rehypothecate”

According to Porter, he has always been concerned about the operations of Celsius and has severally warned people about investing their coins in the network.

Porter said that his suspicion about Celsius was confirmed after observing the reaction of the Celsius Chief Executive Officer (CEO), Alex Mashinsky, to an engagement with Mike Alfred, the founding CEO at BrightScope & Digital Assets Data.

Celsius CEO Reacts To Porter

In his reaction to Porter’s comment, the CEO of Celsius, Alex Mashinsky, said that people should disregard what they read from the press. He explained that what the Celsius do as a company is stake dozens of coins such as ADA and ether. He added that they also lend to holders of 60 different coins such as BTC.

“you swap and on-ramps without FEES free withdrawals and we pay your gas fees”

He added that this service is only available in Celsius.

Not Really Without Fees

Countering Mashinsky’s claim that their service is without fees, Chalkers asked,

“What do you call a 9% to purchase stable coins to pay off the 1% loan? Not a fee?”

A Twitter user, @T80Davenport, said that Porter’s opinion is still one-sided. He said that it would be a good idea to interview Celsius CEO to determine the veracity of the claims of the network.

“Well, why don’t you interview @Mashinsky and put it straight. We can all simply listen to one side of the argument however we should listen to all sides and make our minds up from there. Get it done.”

$100 in 30 Days After $400 Deposit

Information available on the Celsius website says that it is home to 1.7 million crypto users. It says:

“Here’s $50 in Bitcoin to join them! Sign up with our referral
code, make a first transfer of $400 or more and hold for 30
days to receive $50 in Bitcoin!”

Celsius is currently trading at $0.5387, down by 5.07% in the past 24 hours. Its market capitalization is also down by 4.98%. Its volume is up by 9.35% in the past 24 hours, which could be an indication that the CEL market is panicked.

A Tradingview chart shows that the market is on a downtrend.  This can be confirmed from the 10-days moving average. The coin has already dropped to lows not yet seen from its historical data. The Relative Strength Index (RSI) records the value, 26. This means that CEL is already oversold and should have seen a reversal. Since this has not happened, the coin may be on the way to a crash.

Sol Gringo seems to be of the opinion that CEL is imploding. He summarized a May 27 Twitter post by writing:

$cel ponzi imploding. Alex Mashinsky dumping on Celsians just like he has been doing for months!

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Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.

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