When it comes to crypto, we’re witnessing a wide array of new elements that have not been witnessed before. We are seeing several companies – from Celsius to Voyager Digital to Three Arrows Capital – filing bankruptcy and taking drastic measures to protect themselves from incoming volatility and other market-based problems, and there’s a lot at stake.
Bankruptcy Is Becoming Too Common
Situations like these are really bringing the space down. People are now viewing crypto in the same light, and its image is being tarnished by what many traders and investors consider to be shady tactics taken on behalf of keeping executives safe.
Celsius, for example, took a lot of flak several months ago when as a means of fighting the hardcore volatility the market was facing, the company had ended all withdrawals indefinitely, and thus people would not be able to gain access to their money. Many individuals reacted with fear and anger, though clearly their screams and yells landed on deaf ears as Celsius then entered bankruptcy proceedings.
This was considered by many investors another nasty turn given that bankruptcy is meant to protect the company, not its customers, and Celsius could remain in operation for the time being without having to worry about what investors would do to get their funds back. For example, they were barred – so long as the proceedings were ongoing – from having to fork out their money to customers, though it now looks like the company is spending quite a bit each day.
All these tactics are also being taken by firms like Voyager Digital. By entering bankruptcy, the company remains protected. Investors cannot pursue legal means or other drastic measures to obtain their funds. The company’s rights come first in the eyes of the overseeing court.
What’s most troubling about these situations is that crypto was initially designed to help those who used it, not who provided it. This clearly shows that the people or the customers in question are not being validated the way they probably should be. Their money is locked away, and while the companies shouldn’t be passed up or tossed to the side, the customers should not be fully forgotten either.
The People Shouldn’t Be Treated Like This
These present circumstances suggest that crypto’s initial notions are being placed on the backburner, and the issuers are garnering more legal respect than those that would potentially use their services.
If crypto is going to remain at the top of its game, the space needs to have more assertive care towards individuals who seek to use it for legitimate means. Many of the customers of Celsius, for example, claim to have lost their life savings and other major portions of their portfolios through the bankruptcy proceedings. Crypto claims to be for the people, but it seems we’ve now reached an era where the people are being ignored.