In this bear market, the crypto-verse witnessed the downfall of an array of projects. Terra and Celsius Network have seemingly taken the top spot. The downfall of Terra caused immense havoc in the crypto market. Just as the community had slowly started to recover from the damage caused by Terra, Celsius dipped by 70 percent. While the firm deals with immense challenges regarding its finances, it could be losing its prominent investors.
In a recent report, Wall Street Journal revealed that Canadian pension fund Caisse de dépôt et placement du Québec along with WestCap Group, a growth-equity firm from New York seemed to bail on the Celsius Network. These firms previously aided in the Celsius Series B funding in raising a whopping 750 million.
With Celsius putting a hold on its withdrawals, swaps, and transfers, no one seemed to be coming to rescue the platform. The aforementioned investors were reportedly not ready to pour in any additional funding.
Furthermore, a few other sources also revealed that the investors were waiting for the network to be acquired. In addition to this, a restructuring of the platform was also anticipated.
An anonymous source familiar with the issue said,
“Few are feeling OK about things. There was more risk in this than fully appreciated.”
The downfall of the Celsius Network has often been compared to that of Terra. The community was quick to point out that Terra, despite being destructive managed to garner support from the community about its resurrection. Both exchanges and some part of the crypto community wanted Terra to get back on its feet. The plethora of proposals and suggestions filtered the market.
While the hate against Kwon and Terraform Labs persisted, the network rolled out a whole new blockchain. Celsius, however, has already failed to garner proper backing from its pertinent investors.
More Celsius and Terra-magnitude downfalls to grace the market?
While some call it a healthy washout, a few others were left drowning in losses. The collapse of these projects was rather catastrophic. However, several others seemed to be ready to kick out projects that weren’t good for the market. Mark Cuban, appeared in a recent interview and pointed out that only projects with valid business models survive the bear market. Similarly, Changpeng Zhao noted that platforms that enter the market to pocket short-term gains with no knowledge of managing operational skills usually suffer.
Billy Markus aka Shibetoshi Nakamoto, the founder of Dogecoin [DOGE] wanted the community to rather learn from these mistakes instead of cribbing about the same.
The community further speculated that Celsius Network’s investors deciding to abandon the crypto lender could either be an example of a lesson learned or they have realized that things were beyond repair at this point.