What just happened to Celsius?
I wanted to comment on a YouTube post about this topic. I got carried away, yet again and decided to post my personal thoughts here. With the disclaimer that I know nothing in comparison to many of you highly experienced retail and corporate investors. I am just speaking as a simple layman.
Yes it’s true it’s not only Celsius, we are in the middle of the ‘everything bubble’ where no one entity can remain immune from. However recently before all this escalated I started getting a bad unexplainable gut feeling about Celsius with no logical explanation. I kept suppressing it, until Crypto Wendy O a week or two ago started giving repeated warnings about the majority of exchanges including Celsius. She kept quoting the principle of;
“if it’s not your keys it’s not your crypto.”
Although I only had a small amount of crypto on their exchange, her warnings combined with my existing gut feeling finally pushed me to remove it to cold storage and the the unexpected did happen. All existing accounts have been frozen for withdrawals.
The more I kept listening to Alex Mashinsky and seeing the vibes coming from their investing community, the darker that gut feeling grew. Everything was just a little too good, too pure and noble and Alex radiated a little too much over confidence, and the investors displayed a little too much euphoria and faith in Celsius. The disclaimer of risk never seemed to be highlighted or mentioned.
Subconscious flashbacks were telling me that I have seen this, so many times before either from observation or through personal experience.
If it’s too good to be true ….then it simply isn’t true”
While their motive and cause seemed truly noble in giving the normal man on the street the opportunity to share in the potential of wealth to be made that is normally reserved for the rich and corporate elite, they should have placed equal emphasis and importance on education, financial literacy.
Teaching their customers the importance of basic risk management, the need of developing emotional and mental discipline, the importance of not succumbing to the instincts of greed, the fundamental rule of never placing all your eggs in anyone’s basket including theirs, the importance of ‘investing only what you can afford to lose in that one basket, the importance of diversification even if it means making less profits and that any investment undertaking will always involve risk.
The final goal being, to have a community of highly educated investors that are learning how to make fully informed choices, stimulated to continually do their own independent research and not allowing themselves to be told what to do and think. Maybe you will not maximise your client quota potential but you will have a quality pool of clients that have become intelligent investors.
If that ‘worst case scenario’ then happens, which now seems to be taking place, no one will go into shock 😱 , claim any form of ‘ignorance’ and no one will be really financially ruined.
Maybe Celsius was providing that kind of education as well, I just never noticed or observed it when visiting their website, in their general info campaigns and in the weekly live streams that I personally watched.
This is another sad day for the whole image of the crypto space that is already suffering from a damaged reputation.
….But having said all this, if Celsius lives true to their stated reasons for initiating this action and somehow resolve their illiquidity issues, it might just turn out to be both a valuable lesson to these naive investors, to wake up to the need and importance of improved self education and a blessing for those ‘weak hands’ that probably would have already panic sold anyway with the inevitable losses.
Sometimes being forced to take a breather might just make that difference with their decision making. You get that chance to recollect your thoughts as to why you came into this space in the first place and remind yourself of that long term vision you had.
Lets just hope that not only Celsius but the whole Crypto space can come out of this even stronger than they were before.
Despite the carnage now taking place so long as we have some form of civilization, electricity and mobile network, Crypto and tech are not only here to stay but will continue to innovate and play an even greater role in our everyday lives.
And in that complete global economic collapse scenario I think we will have far greater things to worry about, where even our monetary fiat savings would also have been lossed no longer being of any use to us anyway even if we could have withdrawn it from the then collapsed banking system.
The then only convenient and practical alternative being that one section of your diversified portfolio that you had stored in a small moon bag of silver & gold coins.