Celsius had Half a Billion on Anchor Protocol.

So this isn’t crypto specific but it obviously can have a big knock on affect, and if I posted this on the celsius sub I would be accused of spreading fud by those who don’t want to hear the risks they are taking.

Celsius give you a small amount of interest in return for you leaving your Bitcoin and other cryptos on their exchange.

They then invest huge amounts in risky defi protocols such as Anchor Protocol who were offering 20% on the Terra stablecoin.

Celsius have admitted they had half a billion invested on Anchor, but before this dangerous game of musical chairs stopped they managed to pull the money out

But this is what these exchanges are doing.

This time they got lucky.

Celsius, Nexo, Blockfi… get your coin off them.

They are doing the same shady shit that lead to the 2009 financial crisis.

Exchanges are risky. Stablecoins are risky. Defi is risky. Counter Parties risky.

To sum up: You are taking a ridiculous amount of risk for a small return.

It’s not a case of if one of these exchanges goes bust but when.

Get out when you smell the smoke because when the fire breaks out you will crushed in the rush to get out with all exits closed.

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42 thoughts on “Celsius had Half a Billion on Anchor Protocol.”

  1. Totally agree. I used Celsius back when it first got up and running. It was okay at first but I as I learned the game I pulled mine out of there. At first they were the custodian to the assets then they updated their terms and had some other company doing it that’s when I seen trouble.

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  2. It’s pretty well known. The yield doesn’t come from thin air… Anything offering an apy, apr is risk involved. You get the return because you assume the risk…
    What I don’t get is how so many didn’t understand it’s risky… All my crypto (outside the Luna I just brought lol) is in lp pools.. I know very well that it can go to 0.

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  3. That is why exchanges are going to be the next banks. They will house our funds and do what they want with it. But when shit hits the fan, they will block withdrawls and suspend trading and so on to cover their tracks and scramble to get our money back

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  4. Honestly, how the fuck did you think these companies generated revenue?

    Don’t tell me lending to institutions. Look at the amount lent compared to revenue produced.

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  5. >They then invest huge amounts in risky defi protocols such as Anchor Protocol who were offering 20% on the Terra stablecoin

    Not only that, but where do you think the coins for shorting come from?

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  6. Well. I feel you.

    But good luck when 90% of crypto are selfproclaimed professional daytraders.
    The whole token price obsession has halted innovation and shifted focus away from what crypto really is and can be.

    Point being, for most it’s just speculative magic money that they’ll trade on some central exchange.

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  7. It’s not sexy but bitcoin on a properly secured hard wallet, backed up seed phrases and several years of patience is how you make it out of this without getting wrecked. Just my two sats.

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  8. give yourself some lead time to get out – it took me a day to get my coins off celsius. careful out there, i don’t think the fed is in control right now.

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  9. This isn’t the first time Celsius has lost money investing customer funds in dubious staking schemes.

    They lost [$50,000,000](https://blockworks.co/celsius-reportedly-affected-in-exploit-of-defi-protocol-badgerdao/) when BadgerDAO got hacked.

    I wonder if people are finally going to realize all these 10%+ interest “staking schemes” are nothing but ponzi schemes rehypothecating investor money into other schemes.

    [Celsius also borrowed a billion Tethers from Tether in exchange for BTC collateral](https://www.coindesk.com/business/2021/10/07/tether-has-lent-1b-to-celsius-network-report/), if you wanted yet more systemic risk in your staking scheme.

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  10. Wise to post here OP. Death by a thousand cuts on the Celsius sub. No doubt having pulled said 1/2 billion off in time they may be lauding their risk assessment and security teams. Only a matter of time before ‘luck’ doesn’t hold so…

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  11. > This time they got lucky.

    It’s not really luck. Anyone could have looked up how the peg worked and done a risk assessment on it and known when to pull out safely.

    Not to mention they say they invest your money to get the yield. They don’t hide this. In every interview with the CEO he’s saying this. OP is spinning it like it’s some dark secret they hide from the world.

    > Exchanges are risky. Stablecoins are risky. Defi is risky. Counter Parties risky.

    So this isn’t really about Celsius using Anchor, it’s about the concept that like everything involving crypto is risky. Which is true.

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  12. DCA into BTC and hold

    Want alil more diversity add in some ETH

    want to get real crazy??? Real fucking Wild West my gamble is ADA

    if it seems to good to be true, it is. Top traders in any market are lucky to pull 12-15% annual return in a bull market wtf make anyone think 20% + month to month is realistically sustainable? I’m confusion

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  13. So what your saying is you didn’t read anything on any of their websites nor do any due diligence before using their service. They say on their websites and in interviews and in promotional videos that they make money by using your coins for institutional loans and investments.

    Celcius also has backing from 12 different venture capital firms and brokerage firms. One of which is Nexo. Thats right nexo is a brokerage firm like voyager is. Thats why they can still earn apy in the U.S.

    You can look up who’s funding whatever on crunch base.

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  14. The worst in all of this, are the people who will complain here in this very subreddit saying nobody warned them.

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  15. Yeah I got my money off Celsius. CEO seems like a nice enough guy but his personality doesn’t instill confidence. Apparently though, while they had to take risks to get a high return, they did monitor it close enough that they were able to get out in time.

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  16. I took my coins off the SECOND that they shut down the reddit. If you won’t let people talk, then your hiding something. I tried posting/commenting a few hours ago and it was still down

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  17. When the various cults accuse you of FUD, you’re simply voicing what they know in their hearts but are afraid to admit. FUD is the cult/tinfoil hat mantra.

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  18. Exchanges will always fuck with your funds, that’s why they offer interest on your deposits. Just a few years back CZ used STEEM tokens that were deposited on Binance by regular users to help Justin Sun overtake the chain by brute force (have enough governance rights to vote out anything and anyone you don’t like).

    There is a reason we always say **not your keys not your crypto**. Stay safe out there folks.

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  19. Point well taken, the high CeFi yields come with significant risk, and we are lucky that Celsius avoided disaster. I use Celsius for their bonuses and high yields, and I’m under no illusions, their model isn’t sustainable. With that said, having funds on Celsius is still several magnitudes safer than holding UST or Luna. UST was destined to fail.

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  20. Because of their risk management procedures they withdrew from Anchor when the UST peg fell to 96-97. They have enough other diversified capital to cover those losses.

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  21. Yeah the writing is on the wall. These exchanges are getting to a point where they are “to big to fail ” only problem is government won’t bail them out.

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