Celsius Network CEO Alex Mashinsky has a plan to revive the company: pivoting the business toward custody and collecting transaction fees.
The fall of the cryptocurrency lending platform Celsius Network, along with the collapse of the Terra ecosystem, have been the main protagonists of the poor performance of the crypto market during the past spring, wiping nearly a trillion dollars off the market.
After halting withdrawals in June, Celsius Network filed for bankruptcy in July. Since then, there has been a lot of news about possible acquisitions that, in the end, have not come to a good end and everything pointed to a company closure, following the filing of bankruptcy proceedings.
However, statements by Alex Mashinsky, CEO of the company, leaked by The New York Times, point to Celsius may have plans to revive the company.
How does Celsius Network plan to revive its activity?
During an employee meeting on September 8, Alex Mashinsky outlined his plan to get the company back on track.
Celsius Network's plans involve a change in the company's activities, leaving aside loans for focus on custody, that is, the storage of other people's cryptocurrencies using your own security infrastructure, and the charging fees for certain types of transactions.
The exact details of the plan are not yet known, as nothing was explained at the meeting about the Bitcoin mining operation that he has active. Instead, the CEO focused on explaining his idea of charging customers a fee for using a “special” high-security wallet.
On the other hand, Mashinsky's idea of charging commissions for certain types of transactions contrasts with the traditional philosophy commission free of Celsius, whose objective was to promote the “unbanking” of users.
In the leaked meeting, Mashinsky compares Celsius Network's bankruptcy to that of Pepsi Co when questioned by some employees.
The company has responded to the leak and issued a statement stating that these types of meetings are held periodically with the aim of “prepare for all scenarios".
For now, the fate of Celsius Network is not in the hands of its CEO, as any proposal will have to go through the New York federal bankruptcy judge who is supervising the bankruptcy process.
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