The Celsius episode – What this analyst thinks about what happened

Questions continue to be asked of Celsius since it abruptly froze user accounts. With the crypto-winter in full swing, account holders are left in anguish over their holdings. Meanwhile, one analyst is in the news after he shared another thread about the “alleged” attack on Celsius.

“Plan C’s Theory no. B”

Plan C is in the news today after he shared a new thread about the alleged attack on Celsius. In the first edition, the analyst alleged that FTX and Alameda Research conspired to trigger the demise of Celsius. The thread in question claimed that these proponents held strong grudges with Celsius. Why? Well, because Celsius’s CEO Mashinsky decided to exit early from its Terra holdings. On the contrary, FTX and Alameda held on and lost millions in the process.

In the second edition, Plan C cited Cory Klippsten, Mike Alfred, and even 3AC for conspiring against Celsius. The analyst expanded on how Swan Bitcoin CEO Cory Klippsten fueled fear around Celsius after Terra’s crash. Klippsten posted “100s of very negative tweets” to create negativity and fear about Celsius. He also benefitted financially from this fear as a “flood of customers left Celsius and signed up for his business,” Plan C claimed.

4/25 – Turned the never ending negativity & fear he created about #Celsius into a marketing campaign where he greatly financially benefited while spooking his competitors customers and allegedly contributing to a bank run. #Crypto #Bitcoin pic.twitter.com/czDbiCc0Wa

— Plan©️ (@TheRealPlanC) June 18, 2022

In fact, according to the analyst, Mike Alfred started spreading rumours of insolvency “with no evidence.” He even referred to Celsius as a “Ponzi on the brink (of collapse).” Plan C alleged that Alfred and Klippsten possibly conspired together to trigger social media FUD.

“A de-peg for a de-peg”

“The allegedly perfect ongoing revenge opportunity for Alameda (FTX), Jump Capital & Three Arrows Capital,” – Plan C.

That’s not all, however. The thread also alleged that Klippsten then stoked Celsius FUD when stETH started to de-peg. Plan C claimed that Alameda, 3AC, and Jump Capital held “alleged” grudges against Celsius for exiting terra during the crash. They, therefore, had enough reason to de-peg their stETH holdings, causing it to de-peg. Because of the massive liquidations, the stETH de-peg started to create complications for Celsius.

17/25 – Alameda allegedly dump sold 50,000 stETH forcing a “depeg” to 0.94, putting pressure on #Celsius & sparked the narrative of them being in trouble.

But, at the same time they shorted #ETH.

Then they allegedly bought back #stETH at a discount & dumped ETH for a profit. pic.twitter.com/hF6YtI9mfm

— Plan©️ (@TheRealPlanC) June 18, 2022

“End with a glimmer of hope”

Plan C ended the allegations with a suggestion for Celsius.

“Celsius needs to explain to their community that they made a mistake by putting too much ETH into the ETH2 contract and by holding too large of an stETH position. They should explain that it is in the best interests of their users to wait until the ETH Merge where everyone would get their Ethereum back.”

Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

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