Summary:
- Arthur Hayes has cautioned the crypto community against believing Goldman Sachs will risk its own money to buy assets from the Celsius Network.
- Mr. Hayes explained that Goldman Sachs would simply assemble a bunch of investors to help them structure the purchase of the distressed assets at a ‘phat’ fee.
- He is also optimistic that if the purchase of Celsius Network’s assets succeeds, withdrawals could be enabled once more and restore confidence in the crypto markets.
The founder and former CEO of Bitmex, Arthur Hayes, has cautioned the crypto community against believing that the behemoth Wall Street bank of Goldman Sachs will risk its own money to buy assets from the crypto lending platform of Celsius Network.
His comments come in the wake of news that Goldman Sachs is seeking $2 billion in commitments from investors to buy the aforementioned distressed assets from the Celsius Network.
Goldman Sachs Will Simply Assemble a Bunch of Investors to Help them Structure the Purchase at a ‘Phat’ Fee.
Mr. Hayes shared his insights via the Twitter thread below, which also pointed out that Goldman Sachs would have to ‘explicitly say’ they are putting their money at risk for the crypto community to believe them.
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Please don’t believe @GoldmanSachs is putting their own money at risk unless they explicitly say so. https://t.co/euUPBGlpnt
— Arthur Hayes (@CryptoHayes) June 24, 2022
Celsius Network’s Assets Could Reenable Withdrawals and Restore Confidence, and Reignite a Crypto Bull Run.
In addition, Arthur Hayes explained that Goldman Sachs will likely do what advisory banks do by ‘[assembling] a bunch of investors, and help them structure the purchase of distressed assets for a phat fee.’
As to the impact of the potential of Goldman Sachs and other investors buying Celsius Network’s assets, Arthur Hayes forecasted that it could result in the withdrawals being enabled on the platform. Such an event would restore confidence in the crypto markets and reignite the bull run. He explained:
If this vehicle actually purchases assets from Celsius Network, and withdrawals are enabled once more, then the community can rejoice that creditors got some of their money back. That would restore confidence and provide more dry powder for a #Cryptocurency bull run.
All ‘Bailouts’ Are PR Stunts Until Money is Deployed – Arthur Hayes.
In his concluding remarks, Arthur Hayes reminded the crypto and investor communities that bailouts should be viewed as PR stunts until actual money is deployed. He said :
Any and all “bailouts” should be viewed PR stunts, until actual money is deployed, and actual depositors can withdraw some or all of their funds from insolvent CENTRALISED crypto lenders.
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