inssolvent means they dont have the money or capital illiquid means they have the money but it is tied up in assets that are not easily sold
so celsius is illiquid and not insolvent??
if you want to snort hopium, then yes
illiquid because of lending?
Two weeks of radio silence, they are already stealing the cooper wire from the walls😂
Sorry that was me
celsius had it's hand in many cookie jars, stETH is an obvious one that caught them, there could be others
steth is not a problem they can sell it otc or on the market
If you had 1 eth would you want back 0.9 eth?
Problem is that steth is not 1:1 anymore. Right now running at a 5% discount. Once it repegs and then they can sell it, but still will take a loss.
Some assets are illiquid say cir example a house or a bitcoin mining farm. Both are assets but would take time, effort and certain costs to sell. StETH also would meet the definition of illiquid with the depeg discount. Insolvent could be on the basis of cashflow. I.e. not enough cash or crypto on hand. This is certainly true of celsius they did not have enough to meet demand so they froze withdrawals. Balance sheet insolvent is not enough assets go meet liabilities regardless of time. That is much worse (likely bankruptcy) but very different to cashflow insolvent. We have to hope this is a temporary cash flow issue that should be solved in time.
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