The Chainge Finance platform proposed options for Celsius Network’s lending service to minimise the damage that could threaten the Web3 sector and the industry at large.
We strongly believe there is no better way of moving forward than working together towards decentralization
This does not represent a “quick fix” but rather a long-term sustainable system replacement that secures asset custody and eliminates risks for all crypto users
— ChaingeFinance (@FinanceChainge) June 20, 2022
We firmly believe there is no better way to move forward than working together toward decentralisation. This does not represent a ‘quick fix’, but rather a long-term sustainable replacement of the system that provides asset custody and eliminates risks for all crypto users
— the statement says.
In the company’s view, moving assets from one centralised organisation to another is pointless. Chainge Finance regards decentralisation of Celsius Network as the logical way out.
The developers stressed that the letter of intent is non-binding. The project, its partners and affiliated entities proposed to acquire ‘certain assets and liabilities’ of the crypto-lending platform.
Immediately after the closing of the proposed deal, we will take reasonable steps to inject liquidity and allocate certain assets to user addresses via the Chainge app using decentralised technology
— the letter notes.
Chainge Finance — a DeFi project that is developing a mobile online-banking app built on the blockchain Fusion. The hallmark of the latter is the Time Lock technology, which allows dividing FSN tokens into time-value parts.
Earlier, The Wall Street Journal reported that Celsius had hired lawyers from Akin Gump Strauss Hauer & Feld for possible restructuring. According to some reports, the company turned to Citigroup.
On June 17 it emerged that leading investors in the crypto-lending platform refused to provide it with additional funding.
Simon Dixon, co-founder of the online investment platform BnkToTheFuture, proposed a rescue plan for Celsius Network similar to Bitfinex’s remediation after the 2016 hack.
Sam Bankman-Fried, the head of FTX and Alameda Research, also said he was ready to help market participants mitigate negative spillovers arising from Celsius’s problems and Three Arrows Capital.
SEC Commissioner Hester Peirce has opposed backing distressed crypto projects.
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