Alan Au

Co-founder of AlgoTune. Learner.

[Alan Au @aaualgotune]

Celsius has been under the spotlight in the past month after its bankruptcy filing. Most of the media or podcasts only cover the surface. We, however, want to go deeper.
https://t.co/D2JIUjsQLS

[Alan Au @aaualgotune]

$400mil deficit in ETH: $1.8 billion ETH liabilities. Celsius had $1.4 billion of ETH assets, of which $680mil is Lido's stETH. Celsius also ran its own validators as confirmed by its staking ETH asset value of $330mil.

[Alan Au @aaualgotune]

Celsius assets and liabilities mismatch - more severe than we thought

[Alan Au @aaualgotune]

$1.6 billion deficit in BTC - $2.5 billion BTC liabilities. Celsius only had $900mil of BTC assets, of which 560mil is in wrapped BTC for DeFi deployment.

[Alan Au @aaualgotune]

6/ Be careful of arrogant founders. Only invest in/with people with strong integrity and capability. Be aware of opaque business model. Always ask for transparency.

[Alan Au @aaualgotune]

Celsius has been under the spotlight in the past month after its bankruptcy filing. Most of the media or podcasts only cover the surface. We, however, want to go deeper.
https://t.co/D2JIUjsQLS

[Alan Au @aaualgotune]

5/ Leverage is a 2-edged sword. Celsius’ equity was merely $20 million back in March 2022 implying a leverage of 1,000x. A typical bank will have a leverage of 10x. Any guess on what happened to Lehman when its leverage was over 30x back in 08?

[Alan Au @aaualgotune]

@KenzieSigalos Celsius business model has failed to work from the very beginning. We published a deep-dive to analyze why Celsius failed and lessons we can learn
Hope this helps reader understand what went wrong
https://t.co/D2JIUjsQLS

[Alan Au @aaualgotune]

Continuing our deep-dive into Anchor protocol and comprehensive analysis of UST de-pegging risk.
How can we hedge this risk as a depositor? At #AlgoTune we provide solutions to mitigate risks. https://t.co/i6B3s7jq3d

[Alan Au @aaualgotune]

Always know there is tremendous risk here but never expect the depeg can happen so fast and so dramatic.
We are glad our post save someone's money