The Chainge Finance platform offered lending service Celsius Network options to minimize the damage that “may threaten the Web3 sector and the industry as a whole.”
We strongly believe there is no better way of moving forward than working together towards decentralization
This does not represent a “quick fix” but rather a long-term sustainable system replacement that secures asset custody and eliminates risks for all crypto users
— ChaingeFinance (@FinanceChainge) June 20, 2022
“We firmly believe that there is no better way to move forward than by working together on decentralization. This does not represent a ‘quick fix’, but rather a long-term sustainable replacement for a system that provides custody of assets and eliminates risk for all cryptocurrency users.
According to the company, moving assets from one centralized organization to another is pointless. Chainge Finance sees decentralization of the Celsius Network as a logical way out of this situation.
The developers emphasized that the letter of intent is optional. The project, its partners and affiliates offered to acquire “certain assets and liabilities” of the crypto lending platform.
“Immediately after the closing of the proposed transaction […] we will make reasonable efforts to introduce some liquidity and distribute certain assets to user addresses through the Chainge application using decentralized technology,” the letter says.
Chainge Finance is a DeFi project that develops a mobile application for online banking based on the Fusion blockchain. The peculiarity of the latter is in the Time Lock technology, which allows you to divide FSN tokens into parts according to time-value.
The Wall Street Journal previously reported that Celsius had hired lawyers from Akin Gump Strauss Hauer & Feld for a possible restructuring. According to some reports, the company turned to Citigroup to solve this problem.
On June 17, it became known that the leading investors of the crypto lending platform refused to provide it with additional funding.
Simon Dixon, co-founder of the online investment platform BnkToTheFuture, has proposed a rescue plan for Celsius similar to the recovery of Bitfinex after the 2016 hack.
The readiness to help cryptocurrency market participants to mitigate negative phenomena due to the problems of Celsius and Three Arrows Capital was also announced by the head of FTX and Alameda Research Sam Bankman-Fried.
Recall that SEC Commissioner Hester Pierce spoke out against supporting crypto projects in a difficult situation.
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