Celsius Network is currently down, and the executives are facing charges. However, a leaked chat showed how they engaged in some of the crimes they committed. The majority of them were market manipulation to attract investors. Furthermore, this meant spending large amounts of money to create false hopes.
Celsius Network Gambled $8 Million Weekly to Save Token’s Price
- A new revelation rocked the crypto community on Twitter after leaked chats showed some atrocities of the Celsius Network. So, Keith, a volunteer analyst assisting Celsius creditors in researching how the crypto company operated, made this revelation. One of the things this volunteer does is to disintegrate some of the complex intricacies of the company’s financials and business documents. So, this analyst recently made a headway.
- This revelation came from a WhatsApp conversation between Celsius Network founder Alex Mashinsky and Roni Pavon, the firm’s former Chief Revenue Officer. Furthermore, this conversation between the two happened in 2021, showing how they operated the company. This discussion was mainly on how they can keep the CEL token alive. However, this involved unacceptable methods.
What was the Conversation About?
- In the new conversation leaks, Celsius Network made some unethical moves in a way to keep the price of their native token alive. So, Mashinsky and Pavon both knew that the price of the CEL token wasn’t sustainable. It didn’t receive much organic interest from buyers and had to rely mainly on artificial inflation. Furthermore, in the leaked chats, the duo expressed worries that CEL Celsius’ massive expenditures sustained CEL’s value. They knew this wasn’t the right way to go, but they had no choice.
- The two executives from the Celsius Network admitted spending above $8 million weekly to sustain CEL’s price. In fact, the coordination of their efforts continued for many months before ending in March 2022. They also made some collaborations with influencers to generate more attention for CEL in the crypto community. So, it is safe to say that the CEL token didn’t receive much organic support from its community members. That’s the reason for the heavy reliance on manipulative methods.
How Did Celsius Network Carry Out This Market Manipulation?
- Their leaked conversation on WhatsApp shows how Celsius Network engaged in this market manipulation. So, Mashinsky was the one who did the majority of the buying of the token. Pavon was the one who mostly gave the approval.
- In one of the leaked chats, Mashinsky asked, “Can I buy 100k CEL and announce it on my Twitter?” Furthermore, he added, “Buying only counts if we all say we bought and how much.
- The downturn in the CEL token’s price began when it became very unsustainable to continue. Moreover, two are currently holding charges of multibillion-dollar scams and market manipulation schemes.
Conclusion
The leaked chats of the executives of the Celsius Network show how far the founder and revenue officer of the crypto company engaged in crime. So, they often gambled and spent large amounts of money to inflate the price of the CEL token.
