This week began with another terrible news for the cryptocurrency market. According to statistics from CoinMarketCap, Bitcoin (BTC) and Ethereum (ETH) have plummeted to fresh 52-week lows of $22,920 and $1,190, respectively. The existing market dynamics indicate that a crypto winter may loom, and the recovery path will be exhaustive.
Meanwhile, Celsius (CEL), a DeFi lending platform and one of the major crypto lenders announced through Twitter on Monday morning that it has halted all withdrawals, swaps, and account transfers.
តើអ្នកកំពុងស្វែងរកព័ត៌មានរហ័សព័ត៌មានជំនួយក្តៅនិងការវិភាគទីផ្សារមែនទេ?
ចុះឈ្មោះសម្រាប់ព្រឹត្តិប័ត្រ Invezz ថ្ងៃនេះ។
វេទិកា បង្ហោះ on its official Medium page that:
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts.”
In response to this unanticipated disclosure, the price of CEL token dropped to $0.2083, a decrease of over 46% in the last twenty-four hours.
Interestingly, Celsius បង្ហោះ in an announcement on 7th June that:
“We at Celsius are online 24–7. We’re working around the clock to continue to serve our community. Celsius has one of the best risk management teams in the world. Our security team and infrastructure is second to none. We have made it through crypto downturns before (this is our fourth!). Celsius is prepared.”
Celsius also commented on its connection with Luna and about false actors spreading misinformation:
“At this already challenging time, it’s unfortunate that vocal actors are spreading misinformation and confusion. They have tried unsuccessfully, for example, to link Celsius to the collapse of Luna and falsely claim that Celsius sustained significant losses as a result. They have stirred confusion around HODL mode and the importance of protecting user accounts. And the list goes on.”
Meanwhile, infuriated twitterati’s shared their concerns:
What compelled Celsius to reach this decision?
In the formal announcement, the Celsius team emphasised that the platform took this decision to put Celsius in a stronger position to meet its withdrawal commitments over time.
Celsius further said that it is taking the required measures for the benefit of its whole community to stabilise liquidity and operations while preserving and protecting assets. Following its client commitment, the platform assured that users would continue to earn rewards throughout the suspension.
Commenting on the process and timelines, the official announcement stated:
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”
Is Celsius following the footsteps of Terra?
As unsettling as it may seem, Celsius is now experiencing several problems that might impede its path to recovery.
Alex Mashinsky, the creator of Celsius, turned to Twitter in May to alleviate concerns that the Luna fork posed a threat to the company’s business, assuring users that Celsius had “little exposure” to Luna and UST and rejecting allegations to the contrary as “rumours” circulated by competing services.
Today, Mashinsky refuted reports that Celsius had a liquidity issue hours before the company announced its service suspension.
Source: https://invezz.com/news/2022/06/13/celsius-pauses-withdrawals-rival-firm-nexo-proposes-buyout/