Author: Catherine Welsch
June 24, 2022

Good news: a crisis in one of the largest crypto lenders Celsius Network did not pull crypto markets under. One week later, as the access to customer funds is still limited, we return to see how the situation at the crypto lending platform develops.

celsius network news june 24

Good news: a crisis in one of the largest crypto lenders Celsius Network did not pull crypto markets under. One week later, as the access to customer funds is still limited, we return to see how the situation at the crypto lending platform develops.

What Extreme Market Conditions Caused This?

Celsius Network is a popular gateway to digital assets.  Customers flocked to it thanks to its extraordinary high rates on lending, up to 17% APY. Thanks to it, it managed to amass billions of user funds under management.

Think of the crypto lending platform as a bank on steroids: the company used eccentric financial strategies to generate high return for customers. Experts warned Celsius customers of the financial risks time and time again, only for it to be dismissed as FUD (fear, uncertainty, doubt).

If you have read our coverage last week, you already know that in mid-June the company encountered a severe liquidity shortage after the value of cryptocurrencies started to decline. A particularly vulnerable position was in stETH, a Lido product that is a tokenized stake on the Ethereum Beacon (PoS) chain.

Citing extreme market conditions, they stopped all swap, withdraw and transfers between Celsius accounts. This has caused panic on the market, as traders became increasingly wary of contagion risk and a bank run.

Is the Crisis in Decentralized Finance under Control?

Stabilizing the Crypto Platform

Since then, quite a lot has already happened, warranting an update to the recap. To begin with, the Celsius team urged the users to beware of impostors. However, instead of maintaining open dialogue with the Celsius community, they chose to pause all Twitter spaces and AMAs altogether.

Meanwhile, “CEL short squeeze” entered the trending topics on Monday. The community managed to make the CEL token value rally 300% and outplay the short sellers.

Trouble Spilling All Over

This liquidity and operations ordeal inevitably drew the attention of traditional finance regulators to DeFi and lending in particular. Shortly after pausing withdrawals, Celsius started a restructuring process and ramping up their legal defense team. This is not unwarranted, as not only Texas State Securities Board but four more states’ Securities Commissions started an investigation into the business operations of the crypto lender.

To make things worse, rumors of contagion risks around other crypto companies and markets were unrelenting. Speculation is, 3 Arrows Capital, which dabbled in even riskier assets, is also on the verge of insolvency. Sam Bankman-Fried of Alameda Research and FTX had to go on record to deny any involvement in the crash and bailouts. The CEO Alex Mashinsky went further and blamed “Wall Street sharks” for the recent industry events.

What Impact Did It Have on the Market?

BoxMining

We reached out to more industry and crypto market experts for insights into the situation. The first comment we received was from the founder of the BoxMining media Michael Gu:

Celsius is rumored to be insolvent. The two main pillars behind their present predicament could be attributed to the use of on-chain leverage & stETH. There is insufficient liquidity for Celsius to swap out of $stETH for $ETH — even at a loss. 

But with the current market scenarios and the amount of loss due to hacks (e.g. BadgerDAO), there is a lot of unwarranted FUD. Even with withdrawals on pause, we shouldn’t forget — Celsius raised $864 million in venture capital and at a certain point was the custodian of over US$3 billion of digital tokens for more than 1 million customers. 

The situation surrounding Celsius is not analogous to what happened to UST-LUNA, and the huge fear surrounding the market is overblown.”

Find a more detailed recap in his video about the events — check it out!

Connor Kenny

Another guest who was kind enough to share his point of view with us is Connor Kenny. We asked him what will expect the markets in the light of these events in the near future:

“The situation with Celsius is worrying for the market as people believed their funds belonged to them and were easily accessible. But now that Celsius has stopped withdrawals leaving their platform, people are stuck with no choice other than to ‘wait and see’. 

This brings into focus the true nature of some of these platforms and will make people question how decentralized crypto really is. The important thing for everyone to remember is that if you do not hold the private keys to your crypto it technically is not yours and all you hold is an ‘IOU’. The best thing to do is move any long-term holds into non-custodial wallets and cold storage devices. 

I do not think this is the end for crypto but it does shine a light on some of the issues we face going forward.”

If you would like to have a more elaborate look into his opinion, we highly recommend watching a video he dedicated to the news and its analysis:

Conclusion

This Sunday evening will mark two weeks since Celsius paused withdrawals and transfers between accounts, so it’s understandable users are getting increasingly worried about their digital assets. The company maintains it will meet its withdrawal obligations in due time, and it seems by now they are in a marginally better position to do so.

Stay tuned to our blog to stay in the know about the latest news in the financial and cryptocurrency world. If you want to receive updates on a daily basis, sign up to our Twitter, Facebook and Telegram.

Author: changehero
June 24, 2022

While all crypto markets have been drowning in red, Bitcoin SV trended and unexpectedly surged. We recap the BSV news that caused it and review expert opinions to give you the idea of what awaits Bitcoin SV up to the end of the decade.

bitcoin sv price prediction

While all crypto markets have been drowning in red, Bitcoin SV trended and unexpectedly surged. We recap the BSV news that caused it and review expert opinions to give you the idea of what awaits Bitcoin SV up to the end of the decade.

Bitcoin SV Forecasts for 2022–2030

YearPrice Forecast, USD
2022$33.702–310.553
2023$125–155
2024$49.306–87.181
2025$14–241.20
2030$137.75–144.64
  • Despite Bitcoin SV shedding most of its market cap in recent years, the majority of forecasts is bullish;
  • The highest possible target is given for as soon as the current year but the lowest is projected into 2025.

What is Bitcoin SV Blockchain?

bitcoin sv logo
Bitcoin SV logo. Source: medium.com

Bitcoin SV is a fork of the original Bitcoin that was made to make the protocol more like the “peer-to-peer digital cash” that was described in the Bitcoin white paper. The SV stands for “Satoshi Vision”. Bitcoin Satoshi Vision did not fork off Bitcoin’s blockchain directly but after a hard fork of the Bitcoin Cash blockchain. The BCH community split further in 2018 after the block size debates: BSV was supported by those who insisted a block limit should be removed completely.

Among the prominent backers of “the Satoshi Vision” are entrepreneur Calvin Ayre and researcher Craig Wright. The latter is notorious for his claims he is actually Satoshi Nakamoto, and the legal battle associated with that.

Of course, there is more to the Bitcoin SV protocol and utility. For more information about it, feel free to check out our Beginner’s Guide.

Bitcoin SV Price History

Bitcoin SV Price in 2018–2020

BSV price chart 2018–2020
Source: CoinMarketCap

As a result of a community schism, another fork happened. Bitcoin SV forked off the Bitcoin Cash blockchain in November 2018, at the time of a scheduled update. Bitcoin SV blockchain received significant support from exchanges and a part of the community, hence the surge above $200 at the start. However, a sell-off of the airdropped BSV token happened as quickly, bringing it closer to $50. The next moments when BSV shined occurred later in 2019 and especially 2020. Around the time of the Genesis hard fork, its price managed to reach a long-standing record around $422.

Bitcoin SV Price in 2021–2022

BSV price chart 2021–2022
Source: CoinMarketCap

Despite not seeing much action beyond early 2020, in 2021 Bitcoin SV caught wind of the bull market and ran to the current all-time high. The highest BSV price ever recorded at the moment is $491.64 on April 16, 2021.

At the time of writing, BSV is worth $64.23 and the coin ranks 40th by market cap according to CoinMarketCap.

What Influences the Price of Bitcoin SV?

Protocol Development

It would come as no surprise that improving the protocol and platform would positively affect the price of an asset. The tricky part is, the Bitcoin Association believes that the Bitcoin protocol is set in stone in the original white paper.

Does it mean they make no improvements, then? Not necessarily: at least the Genesis hard fork was necessary to remove the block cap. Instead of amending the protocol, the teams work on software. Among the latest introduced features are LiteClient and extended support for a smart contract language sCrypt. The LiteClient is an especially welcome novelty since the Bitcoin SV network now includes blocks as huge as 3.8 GB which some nodes struggle with.

Listings

The reason BSV rallied while the market is in the red is actually really simple: a listing on Huobi Japan. However, there is a bit more to it than a new market. Japan is one of the few countries that has a comprehensive regulatory framework for digital assets. Being approved on a regulated exchange in this jurisdiction gives legitimacy to Bitcoin SV. What’s more, the crypto market is simply very popular with Japanese investors.

Is Craig Wright Right?

Surprisingly, the news associated with Wright still manages to hold a sway over the BSV price. The legal team of the researcher is engaged in multiple lawsuits over the copyright on Bitcoin and a couple of defamation lawsuits against influencers. Most recently, they submitted claims that large cryptocurrency exchanges, such as Coinbase and Kraken, “misrepresent Bitcoin” by “passing off” BTC as the “real Bitcoin” (which they believe BSV is).

The community of BSV holders, whether they sincerely agree with Craig Wright’s claims or not, still watches closely for the news that can impact the integrity of the project.

Bitcoin SV Price Prediction 2022

With all these in mind, let’s see what industry experts think about the future forecast for Bitcoin SV.

Using technical analysis, The News Crypto plotted a path that BSV can follow: it is trading near the support level, below which the lowest is $33.702. In contrast, if it prolongs the positive price action, the nearest resistances it will encounter lie at $75.934 and $107.783. The outlet claims that it can even reach $310.553 this year.  Another media, Coinquora, also using Fibonacci extensions, suggests that by the end of 2022, Bitcoin SV has the potential to reach $193.68. In the nearest term, it is supposed to run up to $74.72.

YouTuber Cilinix Crypto took a moment to chart a couple of scenarios for Bitcoin SV after a bounce. In case it breaks out of consolidation, before reaching $65–70 it would need to overtake resistances at $56.5 and $58. Should this fail, the next targets for BSV are $53 and $45.

Bitcoin SV Price Predictions for 2023 and 2024 

News and analysis outlet CryptoNewsZ is bullish on Bitcoin SV, and in 2023 they see it trading in the range between $125 and $155.

In comparison with the current prices, Bitcoin SV will start 2024 on a discount, somewhere between $49.306 and $72.508. By December 2024 though, it will move to a higher range of $59.283–87.181 — TradingBeasts.

Bitcoin SV Price Prediction 2025

What does an even more distant future hold in store? The opinions are even more divisive: LongForecast goes turbo bear on BSV and claims it will lose 75% of its value and arrive at $14.

On the contrary, TechNewsLeader is moderately bullish and believes Bitcoin SV will reach $199 on average. PricePrediction.net goes along and charts a broad range between $134.51 and $241.20 for BSV in 2025.

Bitcoin SV Price Prediction 2030

Going forward, no one knows what will happen to the crypto market as a whole and to the BSV blockchain particularly. Coin Price Forecast puts forward a guesstimate of $137.75–144.64 but a forecast so far in the future should only be viewed as an educated guess.

ChangeHero Prediction for Bitcoin SV

The team and the backers were bold enough to lift all restrictions and make a crazy attempt to restore the original Bitcoin protocol. However, aggressively pushing a contrarian ethos is most likely to backfire for the entire community, whether they indulge Craig Wright’s opinions or not. Due to that, the future of Bitcoin SV is uncertain.

Conclusion

The blockchain that claims to be the original Bitcoin is doing fine, but the narrative ties to Bitcoin act as a double-edged sword for its reputation. Regardless, the crypto community has high expectations for BSV.

Check out and subscribe to our blog for more tips, guides and BSV news. Give ChangeHero a follow on Twitter, Facebook, Reddit and Telegram for live updates and even more content.

FAQ

Does BSV have a future?

Bitcoin SV supporters and developers are making sure the blockchain ecosystem develops and flourishes. 

What is happening with Bitcoin SV?

Bitcoin SV has been trending on the news about listing on Huobi Japan. This new market gave access to a regulated and engaged market and boosted the confidence of  investors.

Is BSV a good investment?

BSV, like other cryptocurrencies, is a high-risk investment. Consider doing your own additional research: this article does not constitute financial or investment advice.

What is BSV worth?

At the time of writing, Bitcoin SV is worth $64.23.

Author: changehero
June 22, 2022

While the topic of metaverse is becoming a more common sight in the crypto community, the play-to-earn trend is red hot. Gala Games is a platform poised to take advantage of this situation with their P2E games. Learn all about this up and coming participant in the crypto revolution in gaming! We explain what is Gala Games doing and all about their prospects in our guide.

what is gala crypto guide

While the topic of metaverse is becoming a more common sight in the crypto community, the play-to-earn trend is red hot. Gala Games is a platform poised to take advantage of this situation with their P2E games. Learn all about this up and coming participant in the crypto revolution in gaming industry! We explain what is Gala Games doing and all about their prospects in our guide.

Key Takeaways

  • Gala Games is a creator of blockchain games, established in 2019. Its founders Eric Schiermeyer and Michael McCarthy worked together in mobile games company Zynga;
  • Instead of having separate game projects and disjointed communities, Gala Games builds a network to support all their games in an economy tied with the GALA token;
  • The future of Gala Games looks promising, as they are preparing to launch a game in Epic Games Store for 190 million active users, and are working on their own proprietary blockchain.

What is Gala Games?

Gala Games logo
Gala Games logo

Galaverse: the Gala Games Ecosystem

Gala Games is not your ordinary game developer and publisher: they work exclusively on blockchain games. The team calls their blockchain-based game network Galaverse because instead of being connected by pure association, the games GALA develop actually run on the Gala blockchain.

The value proposition of the games by GALA is owning what you earn. The developers believe using the blockchain technology solves the problem of centralized ownership and instead grants more power to the gamers.

Like many blockchain game developers before them, Gala Games chose to have non-fungible tokens (NFTs) represent ownership rights. Once issued in a specified amount, only this amount of NFTs will exist at a contract address, so it is possible to have unique assets represented with them.

Of course, to have an economy built around Galaverse, NFTs are not enough and there should be a means of exchange. This is why the GALA token exists, which is a regular token on the blockchain.

GALA Games Platform

The key components of the Gala Games Node Ecosystem are:
Gala Games
The Game Development Studios
The Governance-Based Random Distribution Algo
Public Database (DB) with Easy-to-Access Endpoints
The Treasure Chest
The Gala Games Triple-Proof Node System
The Gala Games Node ecosystem map. Source: Gala Games on Medium

The GALA tokens are distributed as rewards for helping maintain the Gala blockchain. With the GALA Game Node, users commit some of their computing power to validate and confirm transactions. The official website claims there are 16 thousand nodes maintaining the ledger.

In total, there are going to be 50 thousand of so called Founder Nodes, which comprise a Proof-of-Work layer of the blockchain. Rented game-specific nodes that also provide rewards run on Proof-of-Stake and are necessary as the amount of games will grow. Finally, free Proof-of-Storage nodes have users commit hosting power to remove reliance on centralized servers.

The GALA App doubles as a wallet for digital assets on the Gala blockchain. However, to stay true to the promise of giving ownership to players, Gala lets users store the assets in a wallet of their choice.

Town Star

At the moment, the only game available for playtesting is a browser-based town sim Town Star. The access to the game is free, and users can earn rewards as long as they have a Gala Games account, but some additional purchases in-game that can boost a town’s productivity.

Town Star NFT marketplace and play-to-earn mechanics uses its own native token TOWN in addition to GALA. With TOWN you can buy skins, skin packs and buildings, available in limited quantities as NFTs, as well as earn the rewards for scoring top positions on the leaderboard.

Gala Games Team and History

The founders of Gala Games are Eric Schiermeyer and Michael McCarthy. Schiermeyer previously founded Zynga, a developer behind massively popular casual games, and served as CRO in Intermix Media, the company behind MySpace.

McCarthy and Schiermeyer worked in Zynga together at the time when Farmville was at its peak popularity. The co-founder duet recognized an opportunity in play-to-earn games early on, and went on to found Gala Games in 2019.

Years later, the Gala Games team has gathered a team a few members shy of one hundred, according to the website. There are roughly a dozen development teams working on separate projects, and three games developed in-house: match-three Town Crush, fantasy RPG Mirandus and the aforementioned Town Star.

What is GALA token?

Like we said before, the Galaverse attempts to build a unified economy for the games and players. One of the cornerstones of this economy is the GALA crypto, so let’s have a closer look at it.

Total Supply50 billion
Supported BlockchainsEthereum, Binance Smart Chain
Launch TypeFair launch
Release scheduleDisinflationary (reward halving)

 One of the main ways of earning GALA is running a node. This includes licensed Founder Nodes, rented Paid Nodes and free nodes that yield 1% of the rewards.

Of course, since it’s a token, traders can find GALA on cryptocurrency exchanges. At the time of writing, the GALA price today is roughly $0.056 a piece.

Gala Games opted for a fair launch of the token, without a premine or a presale. However, early supporters with an NFT license for a Founder Node obviously get an advantage in mining.

What is GALA Coin Used for?

Earning GALA is one thing, but how do you spend it and on what? For that, the official Store is your one-stop shop.

Depending on the purpose of an NFT, it represents in-game items and assets in specified games. For example, you can buy hero packs for Walking Dead Empires or virtual lands in Eternal Paradox (both games are still in development).

It is not only games, though: Gala Music is an entirely separate music streaming platform which also uses GALA. Like in the Gala Games network, users can set up nodes to earn it and spend it on drops from their favorite artists.

Comparison with similar projects: Sky Mavis

Probably the most similar project right now on the market is Sky Mavis, best known for Axie Infinity. While this is not their sole game on the platform, it is the most popular.

Pet battler (like Pokemon) Axie Infinity is powered by the Ronin blockchain. Virtual pet Axies are represented by NFTs, and the game’s economy relies on two currencies: Smooth Love Potion (SLP) and Axie Infinity Shards (AXS).

SLP is an in-game currency and an ERC20 token which is used in breeding Axies: minting a new NFT with properties from the source tokens. AXS are a governance token (also ERC20) which can be staked, locked in to vote and spent in-game.

Axie Infinity has already migrated to a blockchain platform of its own, and its economy is slightly different from the Gala games’ one. Sky Mavis also intends to gradually transfer governance to a DAO of AXS holders, while Gala Games has made no such plans public yet.

What is Gala Games Criticized For?

There are a couple warning signs about the whole Gala ecosystem that are worth directing attention to. The first one is the mission statement, or more exactly, how it translates into reality, and the second is a sustainability problem.

Gala Games maintains that they operate on the premise of decentralization but the devil is in the details. It is true that owning an NFT linked to an in-game asset proves you own it — the token, that is. The asset it is linked to or any rights associated with it are exercised solely by Gala Games, and can be amended or revoked without a notice.

YouTuber Bitcoin Strategy made a video on GALA tokenomics and fairly reviewed issues with the model.

Without focusing too much on the games and their in-game economies, Gerhard brought to attention the fact that the players are more likely to engage with the games for the “earn” part, not “play”. From his own experience, he even claims that people will soon enough find a way to game the system, threatening the sustainability of the cash flow.

Partnerships and Future of Gala Games

Currently, the Gala network exists on the Ethereum and Binance Smart Chain blockchains. But not forever: a proprietary blockchain is in the works. Previously known as GalaChain, its newer working title is Project GYRI.

Nonetheless, Gala World is games first, blockchain second, and players have a lot to look forward, too. Recently Gala Games announced one of their upcoming titles, a battle royale in the Wild West setting GRIT will be available in Epic Games Store, the platform with 190 million active monthly users.

Less flashy but nonetheless significant partnerships of the company include crypto-friendly browser Brave, Mazer Gaming, Bitrue and Polygon.

Gala Games on Social Media 

Last week, Galaverse convention was held in Malta. Blogger Maison Versluis shared a highlight reel for anyone curious about the event.
And obviously, Gala is going to be represented on the NFT NYC 2022 conference! Their VOX tokens might be of interest to the attendees, for sure.
News hub play2moon reviewed one of the upcoming projects Mirandus. The MMORPG will host a playtest on June 21, accompanied by a NFT avatar snapshot.

How to store GALA?

Now that you are more familiar with the fundamentals, only a few things left to learn if you want to dive right in. For example, what is the best wallet for GALA coins?

Pay attention to the chain of the GALA token. For ERC20 tokens, Metamask is a great choice. For BEP20, your options are Binance Chain Wallet or Trust Wallet — the latter supports both versions.

How to buy GALA on ChangeHero?

 Getting GALA with crypto without sign-ups is possible on ChangeHero, and it’s very easy:

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your GALA wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
  4. All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives. 
    • The Best Rate transactions will use the rate current to the time when your funds arrive.
    • The Fixed Rate will use the rate at the time of step 1;
  5. As soon as the exchange has been processed, your GALA are on the way to your wallet. 

In any case, the ChangeHero’s customer support is available 24/7 in the chat on our website or through the email: [email protected].

Conclusion

The Gala platform has impressive backing and talent behind their projects, even though it is only now starting to unwind. Are the gamers going to be sold on the promise of owning what is theirs? It is an open question.

Check out our blog for more tips and beginner-friendly guides. Give ChangeHero a follow on Twitter, Facebook and Telegram for live updates and even more content.

Frequently Asked Questions

  • What is Gala Games?
    • Gala Games is a game development and publishing studio with a particular focus on play-to-earn games. Eric Schiermeyer and Michael McCarthy founded the company in 2019 after having worked on MySpace and Zynga.
  • What is GALA crypto?
    • The GALA crypto token is a universal currency for all games in the its ecosystem and the marketplace. Users earn it for helping maintain a distributed network that powers the ecosystem.
  • What is Gala token used for?
    • You can spend the GALA token on in-game items and assets, or on music on the Gala Music platform.
  • What is the future of Gala Games?
    • The company is working on the proprietary blockchain with a codename Project GYRI. But more importantly, they have 12 games in development, including a battle royale to be launched later in 2022 in the Epic Games Store.
Author: Catherine Welsch
June 17, 2022

On June 13, crypto lender Celsius Network halted withdrawals and account transfers. Why did it happen and will it affect the crypto market?

what happened to celsius network

On June 13, crypto lender Celsius Network halted withdrawals and account transfers. A deeper look into the reasons for it reveals a troublesome situation, and some even claim it was a catalyst for Bitcoin and Ethereum dropping to yearly lows. So let’s try to unpack: what happened to Celsius Network and what next?

What is Celsius Network and CEL?

Celsius Network logo
Celsius Network logo

Celsius Network is a blockchain-based lending and staking platform. It positions itself as a decentralized and transparent alternative to “TradFi” and attracts users with lucrative yields.

Its native token CEL offers additional privileges to its holders on the platform: discounts on loan payments, increased yields, and more. Since Celsius works on the Ethereum blockchain, CEL is an ERC20 token.

For more background on these products, you can check out our beginner’s guide to the Celsius crypto platform.

How Does Celsius Network Work?

Traditional finance has used lending to generate yield for deposits for many centuries now. However, a platform like Celsius would not have settled for a solution this simple.

The generous annual percentage yields that Celsius offered — up to 17% on deposits — became achievable thanks to DeFi. And not simply using decentralized protocols: Celsius goes all-out on yield generating strategies.

Using the liquidity provided by depositors, over years Celsius built enormous positions across plenty of DeFi protocols, including the likes of Anchor Protocol. It has even been public knowledge that Celsius uses unsecured lending on a very limited basis, despite what they used to tell to their users.

Until recently, all these criticisms were rather successfully dismissed as FUD: Celsius was working as intended. Users staked cryptocurrencies and received handsome payouts, loaners received crypto as long as they provided collateral.

Why Did Celsius Pause Withdrawals?

The whole situation has been excellently described in detail on Twitter by users jonwu.aztec and Namcios. Long story short: Celsius underestimated the risk that came with their loaning strategies. The crypto lender is handling a liquidity shortage and not being too graceful about it.

Like we mentioned, Celsius had massive positions across plenty of DeFi protocols. The first positions to get redeemed for USDC were Celsius stakes of wBTC and ETH in Aave, and instead of repaying some other loans upfront, Celsius chose to reimburse collateral.

Why would you opt for this? We can see it on the example of the stETH position of Celsius. StETH is a product by Lido: it represents ETH staked in the Beacon chain.

The main problem with stETH is that it is not redeemable for ETH for 6~12 months after the merge. Right now, one can only trade stETH for ETH on an open market or lend it in exchange for ETH.

Curve is a popular protocol to do it, but at the moment of writing, Curve has virtually no liquidity for the pair. To make things worse, stETH lost its peg to Ether.

Therefore, Celsius Network ended up with outstanding loans it can’t repay in the loaned cryptocurrency. The only choice is to replenish collateral in the currencies they have, which is multiple the debt.

So, is Celsius Insolvent?

As for the severity of the situation, at the time of writing there is no definitive statement on the insolvency of Celsius Network. From the latest news on the topic, the company seems to bolster their legal team to tackle incoming repercussions but is far from going belly-up.

The CEL token momentarily jumped 117% up on Tuesday with this update to the unraveling situation. What is more, it coincided with the news of Tether liquidating their Celsius position at no loss.

What Will Happen to Celsius Network Now?

For the input on the topic and the future of Celsius, we reached out to Donald Lee of CoursehackClub YouTube channel.

What is happening to Celsius?
— There had been rumors last week that Celsius was insolvent, which means that, people deposited their crypto with Celsius, and Celsius didn’t have the funds to pay back all depositors when asked for.
As a result, on Sunday, Celsius paused all withdrawals, swaps, and transfers. This created huge FUD (i.e. fear, uncertainty, and doubt) that Celsius was going to go bankrupt and they are one of the largest centralized lending platforms in crypto with ~12B in assets just mid-May.

Donald Lee

Will Celsius Overheat Affect the Market?

How will it influence the market?
— There were also concerns that the company faced potential liquidation on their large leveraged BTC position on Maker. Prior to Bitcoin falling to the current prices near 20K, Celsius’s liquidation price was ~22K. If they had been liquidated, it would be game over and we wouldn’t know how Bitcoin would have recovered.
There is VERY strong support at $20K for BTC, and never in history had Bitcoin closed below the last cycle’s all time high. Many factors, like COVID-19, the war, and especially interest rate hikes are putting downward pressure on price. We have never been in this state before.
Luckily, Celsius has brought down their liquidation price to $14K as per the vault. Maker has stated they are low-risk. The main contributor to the crypto market and stocks right now is the Fed meeting. We may see further downside.
Speculation: There is too much risk right now for not just Celsius, but the entire crypto market and potentially stocks, for Celsius to be liquidated. El Salvador is in the red with their BTC holdings. I guess my FUD analysis is that if Celsius goes bankrupt, there will be much bigger problems in the world to worry about – I think big money (i.e. institutions) will not let that happen.
P.S. We don’t know how big Celsius’s war chest is. It’s a different situation from Terra and Luna. People should not worry for now and stay positive about the situation… until Bitcoin falls under $14K (their liquidation price – which is unlikely).

Donald Lee

For even more insight into the situation, watch the video from our guest expert with a detailed breakdown of the Celsius situation:

A Bottom Line

The market is absorbing the shock of closed withdrawals, and other forces are taking precedence over the influence of Celsius’ positions on the market. However, will Celsius Network handle the damage and the consequences remains to be seen.

We hope you enjoyed this deep dive, and you can find more in our blog! If you want updates on a daily basis, sign up to our Twitter, Facebook and Telegram.

Author: changehero
June 10, 2022

PancakeSwap keeps its crown in the BSC ecosystem for years, and Binance Labs investment proves it. However, the community hopes that the updates to tokenomics will focus on utility rather than bare supply dynamics, and the involvement of investors will not change the community-driven development.

pancakeswap price prediction banner

Some serious change is cooking up in the PancakeSwap protocol, so it’s time to have a look at CAKE price prediction 2022 and review PancakeSwap token news — there is a lot to digest.

CAKE price predictions 2022–2030

YearPrice, USD
2022$2.25–30
2023$34.40
2024$10.32–12.47
2025$11.96–60
2030$89.96–106.95
  • The range of multiple CAKE price predictions in 2022 is really wide: from a realistic $2.255 to a bold $30;
  • Most of the long-term predictions show little confidence that CAKE can overtake its ATH of $44.18 even in 2025;
  • However, there are ultra bullish forecasts that predict PancakeSwap exceeding $100 by 2030.

What is PancakeSwap and CAKE?

PancakeSwap logo
PancakeSwap logo

Established in 2020, PancakeSwap is a Binance Smart Chain-based decentralized finance platform. At the time, decentralized finance (DeFi) was picking up the pace on Ethereum but ran into the hurdles of exorbitant network fees and transaction congestion — Binance Smart Chain became a popular alternative.

PancakeSwap is an automatic market maker (AMM) powered decentralized exchange. Provided you grant liquidity to a pool, you can list your own token on PancakeSwap with no sweat.

The native token CAKE is a governance token of the platform that can be earned through yield farming. The more liquidity you contribute, the more CAKE you can earn and the more weight your vote has in steering the protocol.

PancakeSwap Price History (2020–2022)

CAKE price chart 2020–2022
Source: CoinMarketCap

PancakeSwap launch happened in late 2020, and it was trading for roughly half dollar in the bull market. The real growth started in early 2021 in sync with BNB and Binance Smart Chain, when traders and DeFi enthusiasts picked it as a cheaper and faster alternative to Ethereum.

At the time, it rallied from below a dollar to $18.92 in February and then to its current all-time high on April 30, 2021: $44.18. Since then, it has been closed in a tightening downtrend.

In 2022 so far, CAKE is continuing this trend: having started at $11.90, by March it dipped to $5 but showed signs of recovery. In April, it managed to grow back to $10 only to fumble down again.

At the time of writing, CAKE is worth $4.31 and the token ranks 70th by market capitalization according to CoinMarketCap.

What influences the CAKE price?

CAKE Tokenomics

Having a coin be deflationary or at least disinflationary seems to be popular with cryptocurrencies, and burning is the most common approach.

Burning means removing coins or tokens from the circulating supply by sending them to an inaccessible address.

There are programmatic burns (even in Ethereum!) that automatically burn a portion of circulating supply, or burn events: quarterly burns in BNB or community-initiated burn events like in SHIB. PancakeSwap opts for programmatic burns: 100% of CAKE raised in Initial Farming Offerings (IFOs), 10% of PancakeSwap lottery profits, and a floating percentage of farmed CAKE are destroyed.

To further adapt to the changing market, the developer community decided to revamp the tokenomics of CAKE further and introduce a limit on the supply at $75 million CAKE.

Protocol Growth

Deflationary pressure is not the only thing that grows with the PancakeSwap user base: straightforwardly, the more users there are on PancakeSwap, the higher the total value of the platform. So far, so good: PancakeSwap remains one of the top DEXs by daily volume.

The anonymous community members regularly post updates to the protocol stats and the roadmap. This April, they introduced long-awaited MasterChef v2 and fixed-term staking, boosting the active trader metric by a whole 1 million from 3 million in March 2022.

Partners and Backing

PancakeSwap is one of the most popular protocols on Binance Smart Chain but it had a fair launch and is developed by an anonymous team. Which is why it became big news that Binance is officially backing them only now.

CAKE jumped up 9% on the news that Binance Labs made a strategic investment in the project’s governance token. The exact size of the stake purchased by a venture arm of the exchange and the extent of their involvement has not been disclosed.

PancakeSwap on Twitter

PancakeSwap community member CryptoKip shared the announcement from Binance Labs with their fellows. Seems like the community needed good news about the DEX.
Not only the price of CAKE reacted to the announcements. The total value locked in PancakeSwap soared and it dominated the BSC ecosystem.
Meanwhile, new products and features get added to the ecosystem. Syrup Protocol claims to operate an algorithmic stablecoin pegged to the price of CAKE.

CAKE Price Prediction 2022

Prediction service by CoinCodex paints the near future of PancakeSwap token in no pretty colors. According to their calculations, the outlook of CAKE is bearish, and the price will keep declining beyond $3.10 in July 2022.

CoinPedia authors have noticeably more confidence in the project. They speculate that by the end of 2022, CAKE will close the year anywhere between $20.51 and $30.

YouTuber Crypto Dynamics analyzes the price chart of CAKE with a wave theory in mind. In late May, he claims, the correction could extend all the way down to $2.255. However, once the correction is over, by the end of 2022 CAKE can break out to new all-time highs.

CAKE Price prediction for 2023–2024

And now, for more optimistic theories. In fact, this one may be even less realistic than others: Gov Capital predicts that in a year, in 2023 1 CAKE will be worth $34.40.

In a more realistic scenario provided by Cryptopolitan, by 2024 1 CAKE will average out at $10.69. The highest price this year will reach $12.47, while $10.32 is the lowest they expect.

CAKE Price prediction 2025

In three years, CoinQuora claims, CAKE can be worth more than $60, continuing its growth from the previous years. Their colleagues from CryptoNewsZ are less bullish but also believe CAKE will be worth $20 in 2025.

TechNewsLeader uses algorithmic forecasting, according to which CAKE in 2025 will reach $16.87 on average at the year’s end. This is the result of the growth over the course of 2025 from $11.96 in January.

CAKE Price prediction 2030

There are too many factors, some of which do not even exist yet, that will keep influencing the price of CAKE this decade. Trying to predict it more or less accurately is a futile task.

However, some analysts and web services still try. Algorithmic forecast by PricePrediction.net estimates that in 2030 CAKE will stay in the range between $89.96 and $106.95.

ChangeHero CAKE price prediction

PancakeSwap is all over the crypto news with their updated tokenomics, Binance backing and growing numbers. Nevertheless, the governance token CAKE is still stuck in a downtrend and is 90% down from its ATH.

It would take a situation similar to the Ethereum exodus in 2021 to induce another meteoric rise of PancakeSwap and the BSC ecosystem. Unless something like this happens, CAKE will be growing at a moderate pace organically.

Conclusion

PancakeSwap keeps its crown in the BSC ecosystem for years, and Binance Labs investment proves it. However, the community hopes that the updates to tokenomics will focus on utility rather than bare supply dynamics, and the involvement of investors will not change the community-driven development.

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Frequently Asked Questions

What is CAKE?

PancakeSwap is an automatic market maker (AMM) powered decentralized exchange. The native token CAKE is a governance token of the platform that can be earned through yield farming.

Is PancakeSwap a good investment 2022?

Recently, PancakeSwap introduced new tokenomics for CAKE, with the main change being a 75 million limit. It became a scarce asset, but gained no new use cases.

What will PancakeSwap (CAKE) be worth in 2022?

Analysts give varied targets for CAKE in 2022, from $2.255 to $20 and even $30.

What will PancakeSwap (CAKE) be worth in 2025?

Depending on the source, CAKE is estimated to reach only $11.96 or soar to $60 in 2025.

What will PancakeSwap (CAKE) be worth in 2030?

If PancakeSwap is around in 2030, CAKE is predicted to be worth up to $106.95.