RE: What does the Celsius Network, 1600’s Goldsmiths and Bear Markets have in common?
I don't agree with you...
Loans are not given out free... they are generally over collaterised!!
So, banks give you loan doing credit check, taking collateral.
So, do DEFI platforms...
Now Celcius... I would not know...but its possible they ust facing a liquidity crunch because stEtH peg to ETH fell...
so they have same assets worth less due to market crash...its possible its liquidity crunch.
Although, I do agree that they don't seem to have liquidity to pay back their depositors which is bad indeed!!
I withdrew my deposits from Celsius long back, because its centralised and I wanted cryptos on my custody but I started with Celsius and benifited with interest rates on BTC, ET and LTC plus those CEL tokens...
Anyway...that's all over.
Let's see if they really did not manage their banking operations properly issuing over collaterised loans to protect investors deposits, else I am not sure this thing should happen.
Lets see.
"Loans are not given out free..."
Where did I post this?
well... the way you puted things it looked like you meant, every one operates like a ponzi scheme... they take your money, lend it and hope not all lenders ask for they loaned amount at the same time!!
Insurance works this way, not the world of credit. Credit practice is giving loans for collateral, if that's done properly, there won't be the kind of crisis your saying.
Celcius, may just be facing a liquidity crunch because of steth depeg from ETH and its massive exposure to stETH.. I think that's bad luck as well...
this does not mean all function like NPA banks do...or function like Govt, and big banks... printing excess money etc...
There I think is a false perception!!