FT News Briefing The collapse of Celsius Network
Sep 19, 2022
Markets are bracing for significant interest rate hikes, with forecasts suggesting rates might exceed 4% into 2024. The downturn has stalled tech IPOs, marking the longest drought in over 20 years. Explore the dramatic rise and fall of Celsius Network, a crypto lender that promised attractive returns but ultimately collapsed, leaving 300,000 customers in limbo. Delve into the troubling practices that led to its demise and the broader implications for the cryptocurrency landscape.
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Interest Rate Hike Predictions
- Markets expect faster, more aggressive interest rate hikes this week.
- Economists predict rates rising above 4%, possibly 5%, impacting stocks and risky assets.
Tech IPO Drought
- Rising interest rates discourage tech IPOs, creating the longest drought this century.
- Tech companies have less urgency to list due to abundant private capital.
Celsius Network Bankruptcy
- Celsius Network, a crypto lender, filed for bankruptcy after pausing withdrawals.
- Founder Alex Mashinsky's leadership and risky investments are under scrutiny.