Kathleen Breitman, co-founder of the layer 1 blockchain project Tezos, said the bankruptcy of troubled crypto lender Celsius was no surprise.
“For those of us who have been in this industry for a while, It should come as no surprise that something like Celsius will go bankrupt, because economic factors have laws that transcend blockchain. This is contrary to belief,” Breitman said in a statement.interview Recently with Bloomberg .
According to co-founder Tezos, some of the latest events in the crypto industry are predictable. While some events may be less predictable. Referring to the bankruptcy of Three Arrows Capital, she noted that what happened to the crypto hedge fund was “extremely dire.”
Hedge funds are one of the largest venture capital firms (VCs) in the crypto space. The company has supported many leading blockchain projects including Ethereum, BlockFi, Polkadot, Solana and the famous Terra LUNA.
Three Arrows Capital (3AC) faces financial challenges aftercollapseof Terra blockchain in May This mistake led to a huge market sell-off. And the price of crypto assets fell to new lows. and in the midst of bloodshed Hedge funds are also unable to reimburse crypto lenders. This led to the forced sale of collateral from BlockFi.
3AC is still debt Voyager Digital $640 million, although Voyager intends to continue the recovery. but the company canfiledChapter 11 bankruptcy after withdrawing funds
Breitman believes, “You can’t build a protocol or a sustainable business based on the theory that numbers will always go up. This is the risk model that leads to the outcome we see,” she concludes.
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