Celsius network recently filed for bankruptcy. It was earlier claiming a $1.2 billion deficit. However, later it was revealed that the Celsius Network is originally in debt of $2.85B. Various analyses indicated that the network hid its real bankruptcy filings. But the reason for this lying is still unknown. Though, in several contexts, it is predicted that there might be mistakes in the circulated report.
Controversy In Real Gap :
The Celsius Network’s bankruptcy filings have shown they have a total debt of $5.5 billion and assets are $4.3 billion. According to this data, a $1.2 billion difference is there. But, another reliable report says that the network has higher liabilities than it shows in filings! It shows $6.6 billion debt and lower assets at $3.8 billion. It raised controversy regarding this serious matter of numbers.
The report revealed that the Celsius Network is under a loss of over 60% of the total Bitcoins deposited by the investors. According to the data, it had only 37,926 Bitcoins remaining. Alongside, they have around 64% of debt in Wrapped BTC.
Before The data comes in front, Simon Dixon has cued the gaps in Celsius network. Revealing the real data, users are in severe trouble as they come to know about their real loss.
Investors Are In Trouble :
Now users are expected not to get their capital back. They have even tried to rally Celsius’s native token hoping to get back some funds. They anticipated that the loss will be fulfilled through the returns. But the original figures are now the greatest concern of the investors.
As initially the liability figure was claimed as $1.2B, and it was predicted that the investors would get their funds back. Because the investors were situated at the bottom of the list. But the recent original debt figure of $2.85 billion on the balance sheet is scaring the investors. It seems there is hardly any chance of getting back the money.
Several crypto platforms have filed for their bankruptcy. As the global market is under a crypto-winter phase, the market is still volatile. Currencies are going through their ups and downs. Mainly, top currencies lost their values. Original crypto, BTC's value loss influenced the whole crypto market in various ways. Even stablecoins are unable to maintain their stability.
The CEO's Statement :
Notably, the CEO and the filing person of Celsius, Alex Mashinsky explained the company’s plans that they were following. According to the CEO, the company's digital assets were increasing faster than the company intended to grow. Later it was discussed to deploy into backward assets of the company. This remark of the CEO created another concern about the crisis.
Apart from this, multiple users and experts defined the CEO's views as incorrect. Though, this statement has raised another question: is bankruptcy just a rumor? According to the reports, the bankruptcy protection was filed after 9 days of the crypto broker Voyager Digital's filing activity. That company also filed in the same court.
Previous Condition :
Additionally, Celsius faced a massive withdrawal from the investors. Also, the company started to trim its workers to reduce the cost. Celsius was grabbing the headlines for its insolvency. Although, the controversial data are now the main trouble for the investors. Will they get back their funds or it'll be flooded in the loss of the network? Several questions are there in the market.
Alongside, the condition of the global crypto market is becoming severe. Investors are reluctant to invest in these bearish markets. The next bull run is the most anticipated thing in the global crypto market now.
One of the successful NFT projects of 2022, Moonbird, has gained over half a billion trading volume within a month. One buying cost will be around $29,000 worth of ETH as of the time of writing this post.
The Web3 startup Proof backs the Proof Collective NFT group and Moonbirds have announced that there will be a transition of Moonbirds and the recent Oddities NFT collections to a CC0. CC0 is the Creative Commons Zero license.
This license provides rights to the Moonbirds or Oddities artwork and likenesses to create and sell derivative projects, merchandise, or anything. No works' rights are reserved by any creators. The public domain can easily use the creations of the networks' artists.
The Valuable Remarks :
The tech entrepreneur and co-founder of venture capitalist, Proof, Kevin Rose, shared a Tweet thread regarding the news. He started by pointing out his co-creation of a social platform named Digg in 2004. He said that Digg’s primary features were immediately copied and circulated by the competing platforms.
The tech entrepreneur that the default gut reaction is to secure that a user created. According to him, Web3 is an opportunity to reboot and recheck everything and return to the first principles.
Moonbirds' Connection With Ethereum :
Moonbirds also relies on the source-proof of the Ethereum Blockchain like other CC0 projects. It needs provenance to prove that the NFTs are the original creations. In the context of that proof, Rose wrote, the accuracy or reliability of Moonbirds will not come from lawyers enforcing trademarks. Instead, it is from the proven provenance and single source of truth of smart contracts.
XCOPY's Plan :
After a day after the pseudonymous crypto artist XCOPY tweet, Proof’s announcement comes. XCOPY tweeted they are also going to distribute all of their previous artwork into the public domain.
Though, XCOPY's NFTs are different from Moonbirds. The uniqueness of XCOPY is they have sold single-edition digital illustrations for millions of dollars per person.
Last week, XCOPY posted that CC0 status would get their “summer.jpg” artwork along with every other work they made that will not be a collaboration.
The recent and latest major Ethereum NFT creators in the growing CC0 movement are Proof and XCOPY. Along with them 'Nouns' is there. It is a novel NFT project. Nouns auctions a single NFT per day and provides owners voting rights to a profitable DAO treasury. Nouns are now the best-known CC0 project in the market.
The Nouns-Project :
Nouns’ has its boxy Noun glasses. It can be used for all kinds of derivative NFT projects. Even though it has this kind of project. Notably, during the last Super Bowl, the Nouns glasses were introduced in a Bud Light commercial.
That Bud Light brand acquired a Nouns NFT and also participated in DAO votes. But it didn’t need to own the NFT using the glasses in the commercial. The nouns co-creator said that you don’t need copyright anymore.
Nouns' co-creator tweeted that CC0 and NFT together do for the media what Bitcoin did for currency. it has transformed a competitive game into a cooperative one.
It’s a massive experiment. Also, it’s only been a year with Nouns. Additionally, Nouns imagery has already got traction during a Super Bowl broadcast. The Nouns DAO randomly utilizes its vast treasury to make funds for projects that will help further expand and spread the IP.
The Nouns auction and DAO model are special. But the existing many other CC0 projects including Goblin-town, Mfers, Anonymice, CrypToadz, and Bitmap are one of the greatest concerns.
But Moonbirds didn’t start as a CC0 project like the mentioned projects. It's for the public. It cannot be expected of thousands of NFT owners.
Online forum Reddit has come up with a new way to accept cryptocurrency payments through Community Points. This Online discussion board has launched a brand new approach to setting the cryptocurrency funds using Neighborhood Factors. The platform is now in a partnership with FTX. FTX is a renowned crypto exchange to unlock new crypto-enabled paths for Reddit Community Points.
How Does It Work?
Reddit Community Points act as a measurement of reputation in users’ communities. They are shown next to usernames in subreddits. It causes the biggest community contributors to be separated from the crowd. Notably, the Community Points are on the Arbitrum Nova blockchain. It helps users to take their reputation anywhere they’re recognized on the Internet.
Additionally, users can embed GIFs, add animated Emojis, and also run weighted polls to get big decisions in their community.
The company wrote that it is not like regular polls. Rather, these polls give larger opportunities to people who have contributed a huge part to the community. As much as Community Points someone will earn, their votes will carry more weight.
A user can give a tip to someone to make a post or comment. Community Points are allowed to be sent to any Redditor with a crypto Vault.
Niraj Sheth, the staff Software Engineer at Reddit stated that they are always working to empower communities and try to introduce new ways to use Reddit. The decentralized,
self-sustaining blockchain technology offers them to do that. Through FTX, they can do that at scale.
FTX Responses :
The partnership of FTX Pay with Reddit will now offer users to buy Ether cryptocurrency from existing supported Reddit applications. That can help to pay fees of blockchain networks for their Community Points transactions on-chain.
Community Points will offer users to get Special Membership in their community. Special Membership allows users to unlock multiple features like badges. Also, a user can personalize their presence on the subreddit. It will offer loyalty, achievement, and style badges alone with a highlighted color to their usernames.
Sam Bankman-Fried, the FTX CEO said that they are excited to partner with Reddit to continue their work. That will empower online communities to harness the power of blockchain.
More Advantages :
Now, community points rely on the Ethereum blockchain. Users will be liable for gas fees or the cost related to performing a transaction on the Ethereum blockchain using the points.
According to Fortune, it means paying a cost in Ethereum, that some consumers might not have. It might not know how to obtain it. The partnership between Reddit and FTX will allow the users to convert fiat currency. It helps community points be more accessible to users who do not know much about crypto platforms.
Amy Wu, the head of FTX Ventures, said that the users need to pay Eth gas fees to transact through their Points on-chain. FTX Pay will allow them to do this activity.
Further, he stated that Reddit is a pioneer in gearing the power of blockchain to strengthen online communities to own and control their communities in various ways. They are excited to support them to succeed in their journey!
The Bitcoin Transaction On Reddit :
In 2013, while Reddit was not exactly a mainstream site, it was yet the most widely used site that started accepting bitcoin. As users started to use bitcoin on Reddit, they were expected to take their wallets to other merchants. That demand was assumed to break bitcoin into the mainstream.
The plus points of bitcoin were many. It allowed secure global digital transactions that did not share any personal information in any situation.
The digital asset or the crypto platform is tending toward the Web3 technologies. The whole industry is continuing to adopt the advanced technology of web3. Blockchain technology, NFTs, and decentralized (Defi) started to dominate the crypto market. Canada is one of the underrated countries which has a major role to play in the crypto sector. Along with other crypto platforms, Ethereum has a large grab in this country’s users. Canada is one of the strongest roots of the Ethereum market.
The Future Of The Crypto :
Meanwhile, Toronto-based 3iQ has launched Bitcoin’s Exchange Traded Fund (ETF). That is the first North American physically-settled BTC Exchange Traded Fund (ETF). Furthermore, Canada’s active crypto users have been increasing over the last two years. Canada is already a center of crypto users. Now its increasing rates are becoming a huge potential for the whole market.
This year, a Blockchain Futurist Conference was held in Toronto. Several heads and renowned personalities were on the panels. One of the most stimulating panels at the conference was named ‘The Future of Decentralized Finance’. That panel included multiple executives and founders of renowned companies. Head of Ripple Labs, Founder of Teller Finance, and executives of Aventus and FLUIDEFI were presented in that panel. The conference stated that bright and talented minds are still producing catchy products, which are now better to adopt as a low-time preference. As the market is going through a bearish condition, it is difficult to invest in the existing platforms of the sector. The enthusiasts are introducing new products to the market. That is a remarkable thing in this condition.
According to Ripple Lab’s Boris Alergant, the industries will adopt decentralized finance technology and it will be the future of the whole industry. alongside, he denoted that this adoption will not be taken before the ‘killer app’ to rally the pique interests.
The Game Changer Of The Condition
The fear of increasing retail investors is taking place in the market. But the institutions and ventured firms are tending toward the decentralized finance approach. The executive of Wave explained that high net worth individuals or institutional investors are increasingly investing in the crypto sector. They are contributing to the futuristic steps of the global digital asset market. Since the end of 2021, a bearish market has taken place. Still, these bearish sentiments are continuing in the crypto sectors. At that time the question arose, is this the end of cryptocurrencies? But now, in this ongoing adoption of web3 technology, the question becomes, is this the right time to get into the market?
Conclusion :
various sectors of the market are adopting web3 technologies including massive metaverse projects. The sectors like gaming platforms are getting into the NFT technologies and metaverse ecosystem. Several smart contracts are being used to upgrade the platforms. Hard forks are taking place in the prominent exchanges. Ethereum Merge and Cardano Vasil hard fork are the most anticipated projects in the global market. Multiple new currencies are going to add to the sectors. For the startups, it became a huge opportunity to grow in the volatile bearish market.
From the start of August, the Indian crypto exchange WazirX has been facing several difficulties. The Enforcement Directorate (ED) is continuing the investigation on the indirect money laundering activity allegedly done by WazirX. On August 3, ED froze WazirX all activities and assets after getting the clue of assisting 16 free loans providing Dapp which are connected with money laundering activity. Now, the controversy regarding the ownership of WazirX caused a mouth-word war between WazirX and Binance. Binance once announced that they 'acquired' WazirX. But after the start of the investigation, Binance is reluctant to accept the ownership. Now in between this rift, the crypto investors in WazirX are in trouble with their holdings and assets.
What Is The Matter?
In November 2019, Binance shared a blog post stating that they 'acquired' WazirX. Now the CEO of Binance, Changpeng Zhao claimed that the process and transaction had never happened in 2019. The real owner of WazirX is its entity Zanmai Labs. Zhao stated clearly that Binance does not have any ownership or shares in Zanmai Labs, the entity operating WazirX, or any other platform backed by the company.
On the other hand, Shetty stated that Binance is the actual owner of WazirX which acquired it two years ago. According to him, Zanmai Labs is a different entity. This company owned the license to operate INR or crypto pair on WazirX and other activities like cryptocurrency transactions and withdrawal are controlled by Binance.
Replying to this, Zhao said Binance is not the owner of WazirX. It only provides wallet services to Wazirx as a technical solution. Other works like user sign-up, log-in, KYC (Know Your Customer), etc. are operated by WazirX itself.
A photograph is taken on social media where both CEOs are present with smiling faces. In that context, Zhao simply clarified that Binance guided WazirX that how users will buy cryptos with INR, how they can invest in Tether, how they can get access to Binance, etc. as the relation with WazirX is only providing wallet service.
Though, in several reports, it was clear that Binance and WazirX tied up as partners to reach the global community with easy access and a more secure exchange system. But Binance straightly rejected the ownership claim stating a 'rumor'.
On August 5, ED published its press release. At that time, Zhao started to share a series of tweets rejecting the ownership of WazirX. On the other hand, Shetty shared the past activities between the two companies.
Investors Are In Trouble :
In between this conflict, the investors, who are the users of WazirX, are in trouble. Over 100 million crypto investors are there on the WazirX platform. The financial activities and assets are frozen by ED. Now, all the controls are in the hands of the Enforcement Directorate. It is assumed that no activities will take place during the investigation until its ultimate result. Now, the investors have been stuck in that chaos. Furthermore, it is a crypto crash movement going. Here the investors of WazirX are carrying another risk through this money laundering activity related to the platform.
