WhatsApp conversations between Celsius Network founders revealed alleged manipulative tactics to artificially boost CEL token’s price, leading to legal charges and concerns about the platform’s transparency.
Key Points
- WhatsApp conversations between Celsius Network founders Alex Mashinsky and Roni Pavon have exposed alleged manipulative tactics to artificially inflate the price of CEL token.
- The founders acknowledged spending over $8 million weekly to sustain CEL’s value, including token purchases and influencer collaborations.
- Despite their efforts, CEL failed to attract genuine interest, leading to disappointment and attempts to manipulate perceptions of token purchases.
- The U.S. Department of Justice has charged Mashinsky and Pavon with a multibillion-dollar scam and market manipulation schemes, raising concerns about Celsius Network’s transparency and integrity.
In an astonishing development, a series of WhatsApp conversations between the founders of Celsius Network have shed light on alleged manipulative tactics involving the price of the company’s native token, CEL. Keith, a volunteer analyst assisting Celsius creditors, uncovered these insights by deciphering the discussions held between Alex Mashinsky, the company’s founder, and Roni Pavon, its former Chief Revenue Officer, in 2021.
Alex and Roni Pavon back in 2021 discussing that CEL price was FAKE and based on Celsius themselves spending millions per week keeping the price up. Alex was clearly upset that CEL was not attracting legitimate interest and the Sell side volume far exceeded any buys. https://t.co/SlR6nAhmtv pic.twitter.com/AAQx4sSJXM
— Keith (@ChazzonKe) September 7, 2023
Artificially Inflating CEL Token Price
The WhatsApp conversations revealed Mashinsky and Pavon’s concern that the price of CEL was being artificially inflated. The duo acknowledged that Celsius Network’s massive expenditures were the main factor sustaining the value of the token. Astonishingly, they admitted to spending over $8 million every week to maintain CEL’s price. Their efforts to boost CEL’s value included purchasing the token and collaborating with influencers to generate more attention within the crypto community.
Disappointment in CEL’s Lack of Genuine Interest
Despite their efforts, Mashinsky and Pavon were disappointed by CEL’s failure to attract genuine interest and its overwhelming sell-side volume. In one exchange, Mashinsky asked Pavon if he could purchase 100k CEL and announce it on his Twitter. Pavon not only gave his approval but also emphasized that their actions would only count if they all announced their purchases and the quantity bought.
Keith, the analyst who uncovered the WhatsApp conversations, observed that the subsequent market downturn coincided with Celsius Network’s cessation of buying activities. According to Keith, the drop in CEL’s price was primarily a result of the company’s exit from the market, rather than an orchestrated attack, as some claimed.
Furthermore, Keith revealed an alleged attempt by Mashinsky to convert low-value holdings from users, valued at less than $10, into CEL tokens. This maneuver was believed to artificially increase the number of customers classified as CEL holders, potentially inflating the token’s popularity and value.
Legal Consequences
In addition to these revelations, it is important to note that the U.S. Department of Justice has charged Alex Mashinsky and Roni Pavon with a multibillion-dollar scam and market manipulation schemes. The charges against them highlight the seriousness of the allegations and the potential legal repercussions they may face.
The exposure of the WhatsApp conversations and the subsequent charges against Celsius Network’s founders have raised significant concerns about the transparency and integrity of the company’s operations. As the investigation unfolds, it remains to be seen how these revelations will impact the future of Celsius Network and its native token, CEL.
In the wake of these allegations, investors and users are left questioning the trustworthiness of the Celsius platform and its commitment to maintaining a fair and sustainable ecosystem. The consequences of these revelations may reverberate throughout the cryptocurrency industry, underscoring the importance of transparency and accountability in the sector.