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Canadian Pension Fund Writes Off $150M Celsius Loss, Believes They Entered Crypto “Too Soon”

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A Canadian Pension Fund Is Feeling The Effects Of Celsius' Downfall.
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A major Canadian pension fund manager has written off a $150M investment in crypto lending platform Celsius Network as a total loss, expecting an impending shutter of the once high-flying CeFi platform.

According to a report from the Financial Times, the fund is the second-largest in Canada and has signaled the write-off as being indicative of the funds’ expeditious decision to have exposure to crypto assets.

Canadian Fund’s “Disappointment”

Caisse de dépôt et placement du Québec, or CDPQ, is Canada’s second-largest pension fund in the country, according to the Times, managing over $300B in funds in Quebec. The fund’s stake in Celsius was written off “out of prudence,” according to the report, signaling that the fund has no expectation of Celsius Network achieving any semblance of a recovery.

The move comes less than a year after the fund described it’s investment into Celsius as being indicative of it’s “conviction” in blockchain technology, and serves as another unfortunate domino in the Celsius downfall. Chief executive of the fund, Charles Emond, said that the fund “went in too soon into a sector that was in transition, with a business that had to manage extremely quick growth.”

While the fund outperformed benchmarks, it still recorded a loss of nearly 8% in the six months ending in June. Emond added that “the first six months of the year were very challenging… Whether it is Celsius or any other investment, needless to say that when we write it off, we are disappointed with the outcome and not happy.”

Celsius token (CEL) has seen a major slide that is commensurate with the general consensus of the platform's future, despite a recent pump. | Source: CEL-USD on TradingView.com

State Of Celsius

Much like the loud and headline-grabbing downfall of Terra Luna, Celsius is certain to leave newer crypto investors with a bad taste in their mouth. When it comes to the CDPQ, the Times has reported that Celsius’ crumbling is enough to leave the Canadian pension behemoth on the sidelines when it comes to short-term crypto investors, while remaining optimistic on the long-term perspective around blockchain technology.

Meanwhile, it’s gone from good to bad to ugly (and worse) for Celsius as the threads unravel. In recent days, it has come to light that Celsius founder Alex Mashinsky took over the firm’s trading strategy earlier in the year. The news comes as Celsius works through it’s bankruptcy case with a New York judge, who recently granted the firm an approval to sell off mined Bitcoin to assist in paying for operations.

Featured image from Pixabay, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
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Deutsche Telekom Launches ETH Validator and Staking Support

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The Ethereum Merge: Decoding The Complete Timeline
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  • StakeWise, a proof-of-stake app, will collaborate with Deutsche Telekom’s MMS.
  • Ethereum’s proof-of-work consensus method was replaced with a proof-of-stake model.

German telecom giant Deutsche Telekom, T-Mobile’s parent firm, has committed to operating a validator to facilitate staking on the Ethereum network.

The news was officially announced by the German telecoms firm on Thursday through a press release. According to the press announcement, “DT’s subsidiary, T-Systems MMS provides the Ethereum Network with infrastructure in the form of validation nodes.”

Validators Entry

StakeWise, a proof-of-stake app, will collaborate with Deutsche Telekom’s MMS to manage a pool. Moreover, users may now take part in staking and transactions without the need for a central validator. Furthermore, this is aligned with Ethereum’s transition to Proof-of-Stake earlier this month, removing the need for miners and instead adding validators.

Dirk Röder, Head of Blockchain Solutions Center at T-Systems MMS says:

“Our cooperation partner StakeWise collects individual Ether tokens from many different owners and merges them into validator nodes. These validator nodes are provided and operated as infrastructure by T-Systems MMS. Staked Ether tokens remain available to the owner in this construct – liquid – and can be used in other Decentralized Finance (DeFi) applications.”

Furthermore, with the new validator, Stakewise anticipates an uptick in Ethereum Network usage and financial transactions. Moreover, also expressing his delight in the new collaboration was Kirill Kutakov, co-founder of StakeWise. 

Kirill stated:

“We are [therefore] pleased that T-Systems MMS, as an infrastructure provider, is giving our protocol more reliability and making the Ethereum ecosystem safer overall.”

In addition, Deutsche Telekom will make more announcements, maybe even revealing a release date. Ethereum’s proof-of-work consensus method was replaced with a proof-of-stake model as part of The Merge, a technological update. Furthermore, Ethereum hopes to reduce its carbon footprint and pave the way for future scalability enhancements with this change.

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DOJ Official Objects to Withdrawal Request by Celsius Network

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Doj Official Objects To Withdrawal Request By Celsius Network
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