Alex Mashinsky, CEO of Celsius, speaks at Web Summit 2021 in Lisbon. 

Celsius Network filed for Chapter 11 bankruptcy a month after freezing customer withdrawals, joining other crypto casualties.

Celsius took the step to stabilize its business and restructure for all stakeholders. The filing was done in the Southern District of New York.

The company, which amassed more than $20 billion by offering 18% interest on cryptocurrency deposits, paused withdrawals and other functions in mid-June, citing "extreme market conditions."

As the Fed raises interest rates aggressively, it hurts risk sentiment and squeezes funding costs. Voyager Digital Ltd. filed for Chapter 11 bankruptcy this month, and Three Arrows Capital has called in liquidators.

Celsius called the pause "difficult but necessary." Without the halt, "the acceleration of withdrawals would have allowed certain customers to be paid in full while leaving others to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities," it said.

Celsius declined to comment. CEO Alex Mashinsky said the move will strengthen the company's future.

The company wants to keep operating. It's not requesting permission to allow customer withdrawals right now; Chapter 11 will handle customer claims. The filing estimates assets and liabilities between $1 billion and $10 billion.

Celsius is advised by Kirkland & Ellis, Centerview Partners, and Alvarez & Marsal.

Yield-promises

Celsius promised 18% returns on crypto loans. It lent those coins to institutional investors and participated in decentralized-finance apps.

When TerraUSD (UST) and Luna collapsed in May, Celsius pulled its funds from Terra's Anchor Protocol, which offered 20% returns on UST deposits. Recently, another large holding, staked ETH, or stETH, which is tied to Ether, became illiquid and discounted to Ether.

The lender is one of many crypto companies hurt by risky bets in the bear market. Also, Babel halted withdrawals. Voyager Digital filed for bankruptcy, and crypto hedge fund Three Arrows Capital filed for Chapter 15 bankruptcy.

According to blockchain data and tracker Zapper, Celsius repaid all of its debt in Aave, Compound, and MakerDAO last month.

Celsius charged Symbolic Capital Partners Ltd. 2,000 Ether as collateral for a cash loan on June 13. According to company filings, Symbolic was charged 2,545.25 Ether on June 11.

In July 6 filings, it said it reshuffled its board, appointing two new members and firing others.

Crypto and blockchain have rebranded as web3. They probably thought it sounded better and didn't want the baggage of scam ICOs, STOs, and skirted securities laws.

It was like Facebook becoming Meta. Crypto's biggest players wanted to change public (and regulator) perception away from pump-and-dump schemes.

After the 2018 ICO gold rush, it's understandable. Every project that raised millions (or billions) never shipped a meaningful product.

Like many crazes, charlatans took the money and ran.

Despite its grifter past, web3 is THE hot topic today as more founders, venture firms, and larger institutions look to build the future decentralized internet.

Supposedly.

How often have you heard: This will change the world, fix the internet, and give people power?

Why are most of web3's biggest proponents (and beneficiaries) the same rich, powerful players who built and invested in the modern internet? It's like they want to remake and own the internet.

Something seems off about that.

Why are insiders getting preferential presale terms before the public, allowing early investors and proponents to flip dirt cheap tokens and advisors shares almost immediately after the public sale?

It's a good gig with guaranteed markups, no risk or progress.

If it sounds like insider trading, it is, at least practically. This is clear when people talk about blockchain/web3 launches and tokens.

Fast money, quick flips, and guaranteed markups/returns are common.

Incentives-wise, it's hard to blame them. Who can blame someone for following the rules to win? Is it their fault or regulators' for not leveling the playing field?

It's similar to oil companies polluting for profit, Instagram depressing you into buying a new dress, or pharma pushing an unnecessary pill.

All of that is fair game, at least until we change the playbook, because people (and corporations) change for pain or love. Who doesn't love money?

belief based on money gain

Sinclair:

“It is difficult to get a man to understand something when his salary depends upon his not understanding it.”

Bitcoin, blockchain, and web3 analogies?

Most blockchain and web3 proponents are true believers, not cynical capitalists. They believe blockchain's inherent transparency and permissionless trust allow humanity to evolve beyond our reptilian ways and build a better decentralized and democratic world.

They highlight issues with the modern internet and monopoly players like Google, Facebook, and Apple. Decentralization fixes everything

If we could give power back to the people and get governments/corporations/individuals out of the way, we'd fix everything.

Blockchain solves supply chain and child labor issues in China.

To meet Paris climate goals, reduce emissions. Create a carbon token.

Fixing online hatred and polarization Web3 Twitter and Facebook replacement.

Web3 must just be the answer for everything… your “perfect” silver bullet.

Nothing fits everyone. Blockchain has pros and cons like everything else.

Blockchain's viral, ponzi-like nature has an MLM (mid level marketing) feel. If you bought Taylor Swift's NFT, your investment is tied to her popularity.

Probably makes you promote Swift more. Play music loudly.

Here's another example:

Imagine if Jehovah’s Witnesses (or evangelical preachers…) got paid for every single person they converted to their cause.

It becomes a self-fulfilling prophecy as their faith and wealth grow.

Which breeds extremism? Ultra-Orthodox Jews are an example. maximalists

Bitcoin and blockchain are causes, religions. It's a money-making movement and ideal.

We're good at convincing ourselves of things we want to believe, hence filter bubbles.

I ignore anything that doesn't fit my worldview and seek out like-minded people, which algorithms amplify.

Then what?

Is web3 merely a new scam?

No, never!

Blockchain has many crucial uses.

Sending money home/abroad without bank fees;

Like fleeing a war-torn country and converting savings to Bitcoin;

Like preventing Twitter from silencing dissidents.

Permissionless, trustless databases could benefit society and humanity. There are, however, many limitations.

Lost password?

What if you're cheated?

What if Trump/Putin/your favorite dictator incites a coup d'état?

What-ifs abound. Decentralization's openness brings good and bad.

No gatekeepers or firefighters to rescue you.

ISIS's fundraising is also frictionless.

Community-owned apps with bad interfaces and service.

Trade-offs rule.

So what compromises does web3 make?

What are your trade-offs? Decentralization has many strengths and flaws. Like Bitcoin's wasteful proof-of-work or Ethereum's political/wealth-based proof-of-stake.

To ensure the survival and veracity of the network/blockchain and to safeguard its nodes, extreme measures have been designed/put in place to prevent hostile takeovers aimed at altering the blockchain, i.e., adding money to your own wallet (account), etc.

These protective measures require significant resources and pose challenges. Reduced speed and throughput, high gas fees (cost to submit/write a transaction to the blockchain), and delayed development times, not to mention forked blockchain chains oops, web3 projects.

Protecting dissidents or rogue regimes makes sense. You need safety, privacy, and calm.

First-world life?

What if you assumed EVERYONE you saw was out to rob/attack you? You'd never travel, trust anyone, accomplish much, or live fully. The economy would collapse.

It's like an ant colony where half the ants do nothing but wait to be attacked.

Waste of time and money.

11% of the US budget goes to the military. Imagine what we could do with the $766B+ we spend on what-ifs annually.

Is so much hypothetical security needed?

Blockchain and web3 are similar.

Does your app need permissionless decentralization? Does your scooter-sharing company really need a proof-of-stake system and 1000s of nodes to avoid Russian hackers? Why?

Worst-case scenario? It's not life or death, unless you overstate the what-ifs. Web3 proponents find improbable scenarios to justify decentralization and tokenization.

Do I need a token to prove ownership of my painting? Unless I'm a master thief, I probably bought it.

despite losing the receipt.

I do, however, love Web 3.

Enough Web3 bashing for now. Understand? Decentralization isn't perfect, but it has huge potential when applied to the right problems.

I see many of the right problems as disrupting big tech's ruthless monopolies. I wrote several years ago about how tokenized blockchains could be used to break big tech's stranglehold on platforms, marketplaces, and social media.

Tokenomics schemes can be used for good and are powerful. Here’s how.

Before the ICO boom, I made a series of predictions about blockchain/crypto's future. It's still true.

Here's where I was then and where I see web3 going:

My 11 Big & Bold Predictions for Blockchain

In the near future, people may wear crypto cash rings or bracelets.

1. While some governments repress cryptocurrency, others will start to embrace it.

2. Blockchain will fundamentally alter voting and governance, resulting in a more open election process.

3. Money freedom will lead to a more geographically open world where people will be more able to leave when there is unrest.

4. Blockchain will make record keeping significantly easier, eliminating the need for a significant portion of government workers whose sole responsibility is paperwork.

5. Overrated are smart contracts.

6. Tokens will replace company stocks.

7. Blockchain increases real estate's liquidity, value, and volatility.

8. Healthcare may be most affected.

9. Crypto could end privacy and lead to Minority Report.

10. New companies with network effects will displace incumbents.

11. Soon, people will wear rings or bracelets with crypto cash.

Some have already happened, while others are still possible.

Time will tell if they happen.

And finally:

What will web3 be?

Who will be in charge?

Closing remarks

Hope you enjoyed this web3 dive. There's much more to say, but that's for another day.

We're writing history as we go.

Tech regulation, mergers, Bitcoin surge How will history remember us?

What about web3 and blockchain?

Is this a revolution or a tulip craze?

Remember, actions speak louder than words (share them in the comments).

Your turn.

I use a conceptual and practical system I developed decades ago as an example.

Since childhood, I've been interested in the brain-mind connection, so I developed a system using scientific breakthroughs, experiments, and the experiences of successful people in my circles.

This story provides a high-level overview of a custom system to inform and inspire readers. Creating a mind gym was one of my best personal and professional investments.

Such a complex system may not be possible for everyone or appear luxurious at first. However, the process and approach may help you find more accessible and viable solutions.

Visualizing the brain as a muscle, I learned to stimulate it with physical and mental exercises, applying a new mindset and behavioral changes.

My methods and practices may not work for others because we're all different. I focus on the approach's principles and highlights so you can create your own program.

Some create a conceptual and practical system intuitively, and others intellectually. Both worked. I see intellect and intuition as higher selves.

The mental tools I introduce are based on lifestyle changes and can be personalized by anyone, barring physical constraints or underlying health conditions.

Some people can't meditate despite wanting to due to mental constraints. This story lacks exceptions.

People's systems may vary. Many have used my tools successfully. All have scientific backing because their benefits attracted scientists. None are unethical or controversial.

My focus is cognition, which is the neocortex's ability. These practices and tools can affect the limbic and reptilian brain regions.

A previous article discussed brain health's biological aspects. This article focuses on psychology.

Thinking, learning, and remembering are cognitive abilities. Cognitive abilities determine our health and performance.

Cognitive health is the ability to think, concentrate, learn, and remember. Cognitive performance boosting involves various tools and processes. My system and protocols address cognitive health and performance.

As a biological organ, the brain's abilities decline with age, especially if not used regularly. Older people have more neurodegenerative disorders like dementia.

As aging is inevitable, I focus on creating cognitive reserves to remain mentally functional as we age and face mental decline or cognitive impairment.

My protocols focus on neurogenesis, or brain growth and maintenance. Neurons and connections can grow at any age.

Metacognition refers to knowing our cognitive abilities, like thinking about thinking and learning how to learn.

In the following sections, I provide an overview of my system, mental tools, and protocols.

This system summarizes my 50-year career. Some may find it too abstract, so I give examples.

First, explain the system. Section 2 introduces activities. Third, how to measure and maintain mental growth.

1 — Developed a practical mental gym.

The mental gym is a metaphor for the physical fitness gym to improve our mental muscles.

This concept covers brain and mind functionality. Integrated biological and psychological components.

I'll describe my mental gym so my other points make sense. My mental gym has physical and mental tools.

Mindfulness, meditation, visualization, self-conversations, breathing exercises, expressive writing, working in a flow state, reading, music, dance, isometric training, barefoot walking, cold/heat exposure, CBT, and social engagements are regular tools.

Dancing, walking, and thermogenesis are body-related tools. As the brain is part of the body and houses the mind, these tools can affect mental abilities such as attention, focus, memory, task switching, and problem-solving.

Different people may like different tools. I chose these tools based on my needs, goals, and lifestyle. They're just examples. You can choose tools that fit your goals and personality.

2 — Performed tasks regularly.

These tools gave me clarity. They became daily hobbies. Some I did alone, others with others.

Some examples: I meditate daily. Even though my overactive mind made daily meditation difficult at first, I now enjoy it. Meditation three times a day sharpens my mind.

Self-talk is used for self-therapy and creativity. Self-talk was initially difficult, but neurogenesis rewired my brain to make it a habit.

Cold showers, warm baths with Epsom salts, fasting, barefoot walks on the beach or grass, dancing, calisthenics, trampoline hopping, and breathing exercises increase my mental clarity, creativity, and productivity.

These exercises can increase BDNF, which promotes nervous system growth. They improve mental capacity and performance by increasing blood flow and brain oxygenation.

I use weekly and occasional activities like dry saunas, talking with others, and community activities.

These activities stimulate the brain and mind, improving performance and cognitive capacity.

3 — Measured progress, set growth goals.

Measuring progress helps us stay on track. Without data, it's hard to stay motivated. When we face inevitable setbacks, we may abandon our dreams.

I created a daily checklist for a spreadsheet with macros. I tracked how often and long I did each activity.

I measured my progress objectively and subjectively. In the progress spreadsheet, I noted my meditation hours and subjective feelings.

In another column, I used good, moderate, and excellent to get qualitative data. It took time and effort. Later, I started benefiting from this automated structure.

Creating a page for each activity, such as meditation, self-talk, cold showers, walking, expressive writing, personal interactions, etc., gave me empirical data I could analyze, modify, and graph to show progress.

Colored charts showed each area's strengths and weaknesses.

Strengths motivate me to continue them. Identifying weaknesses helped me improve them.

As the system matured, data recording became a habit and took less time. I saw the result immediately because I automated the charts when I entered daily data. Early time investment paid off later.

Mind Gym Benefits, Effective Use, and Progress Measuring

This concept helped me move from comfort to risk. I accept things as they are.

Turnarounds were made. I stopped feeling "Fight-Flight-Freeze" and maintained self-control.

I tamed my overactive amygdala by strengthening my brain. Stress and anxiety decreased. With these shifts, I accepted criticism and turned envy into admiration. Clarity improved.

When the cognitive part of the brain became stronger and the primitive part was tamed, managing thoughts and emotions became easier. My AQ increased. I learned to tolerate people, physical, mental, and emotional obstacles.

Accessing vast information sources in my subconscious mind through an improved RAS allowed me to easily tap into my higher self and recognize flaws in my lower self.

Summary

The brain loves patterns and routines, so habits help. Observing, developing, and monitoring habits mindfully can be beneficial. Mindfulness helps us achieve this goal systematically.

As body and mind are connected, we must consider both when building habits. Consistent and joyful practices can strengthen neurons and neural connections.

Habits help us accomplish more with less effort. Regularly using mental tools and processes can improve our cognitive health and performance as we age.

Creating daily habits to improve cognitive abilities can sharpen our minds and boost our well-being.

Some apps monitor our activities and behavior to help build habits. If you can't replicate my system, try these apps. Some smartwatches and fitness devices include them.

Set aside time each day for mental activities you enjoy. Regular scheduling and practice can strengthen brain regions and form habits. Once you form habits, tasks become easy.

Improving our minds is a lifelong journey. It's easier and more sustainable to increase our efforts daily, weekly, monthly, or annually.

Despite life's ups and downs, many want to remain calm and cheerful.

This valuable skill is unrelated to wealth or fame. It's about our mindset, fueled by our biological and psychological needs.

Here are some lessons I've learned about staying calm and composed despite challenges and setbacks.

1 — Tranquillity starts with observing thoughts and feelings.

2 — Clear the mental clutter and emotional entanglements with conscious breathing and gentle movements.

3 — Accept situations and events as they are with no resistance.

4 — Self-love can lead to loving others and increasing compassion.

5 — Count your blessings and cultivate gratitude.

Clear thinking can bring joy and satisfaction. It's a privilege to wake up with a healthy body and clear mind, ready to connect with others and serve them.

Thank you for reading my perspectives. I wish you a healthy and happy life.

Economic mutual destruction.

Multibillion-dollar corporations never bothered with an independent audit, and they all lied about their balance sheets.

It's easy to forget that the Big Four accounting firms are lousy fraud enablers. Just because they sign off on your books doesn't mean you're not a hoax waiting to erupt.

This is *crazy* Capitalism depends on independent auditors. Rich folks need to know their financial advisers aren't lying. Rich folks usually succeed.

No accounting. EY, KPMG, PWC, and Deloitte make more money consulting firms than signing off on their accounts.

The Big Four sign off on phony books because failing to make friends with unscrupulous corporations may cost them consulting contracts.

The Big Four are the only firms big enough to oversee bankruptcy when they sign off on fraudulent books, as they did for Carillion in 2018. All four profited from Carillion's bankruptcy.

The Big Four are corrupt without any consequences for misconduct. Who can forget when KPMG's top management was fined millions for helping auditors cheat on ethics exams?

Consulting and auditing conflict. Consultants help a firm cover its evil activities, such as tax fraud or wage theft, whereas auditors add clarity to a company's finances. The Big Four make more money from cooking books than from uncooking them, thus they are constantly embroiled in scandals.

If a major scandal breaks, it may bring down the entire sector and substantial parts of the economy. Jim Peterson explains system risk for The Dig.

The Big Four are voluntary private partnerships where accountants invest their time, reputations, and money. If a controversy threatens the business, partners who depart may avoid scandal and financial disaster.

When disaster looms, each partner should bolt for the door, even if a disciplined stay-and-hold posture could weather the storm. This happened to Arthur Andersen during Enron's collapse, and a 2006 EU report recognized the risk to other corporations.

Each partner at a huge firm knows how much dirty laundry they've buried in the company's garden, and they have well-founded suspicions about what other partners have buried, too. When someone digs, everyone runs.

If a firm confronts substantial litigation damages or enforcement penalties, it could trigger the collapse of one of the Big Four. That would be bad news for the firm's clients, who would have trouble finding another big auditor.

Most of the world's auditing capacity is concentrated in four enormous, brittle, opaque, compromised organizations. If one of them goes bankrupt, the other three won't be able to take on its clients.

Peterson: Another collapse would strand many of the world's large public businesses, leaving them unable to obtain audit views for their securities listings and regulatory compliance.

Count Down: The Past, Present, and Uncertain Future of the Big Four Accounting Firms is in its second edition.

https://www.emerald.com/insight/publication/doi/10.1108/9781787147003