It is another earthquake that shakes the already troubled universe of cryptocurrencies. Less than a month after the collapse of Luna, this Monday it was the turn of the cryptocurrency lending platform Celsius to suspend the possibility for users to make withdrawals.
In a note posted on the official Twitter account, the company said that all withdrawals, redemptions and transfers between accounts are currently “on hold” due to “extreme market conditions.” The company claims to be “acting in the interest of the community” and guarantees that operations will continue. “We are moving forward with this action to put Celsius in a better position to meet its loan obligations over time,” the company added.
Celsius says the freeze is a “necessary” measure to “stabilize liquidity and operations” while the company takes “necessary steps to preserve and protect” its assets. Those in charge ensure that customers will continue to receive their “rewards” while operations are stopped, something that Celsius guarantees is temporary.
.@CelsiusNetwork is pausing all withdrawals, exchanges and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
—Celsius (@CelsiusNetwork) June 13, 2022
“We understand that this news is difficult, but we believe that our decision to suspend withdrawals is the most responsible action we can take to protect our community,” the platform says, admitting that “there is a lot of work ahead” to restore operations, and “multiple options” are being considered. The process “will take time and there may be delays.”
Celsius is North American and is currently one of the largest crypto lending companies in operation, with around 1.7 million customers. Users can make loans in Bitcoins, Ether and Tether. The lender receives weekly interest that can reach 18% per year. At the end of last year, Celsius was valued at more than three billion dollars.
The withdrawal freeze comes at a time of high volatility in the crypto asset market, at a time when rising interest rates and high inflation are leading investors to flee assets considered riskier.
Cryptocurrency shake. A trip to the lunar eclipse
The measure did not take long to shake the entire universe of cryptocurrencies. According to Reuters, the value of Bitcoin, the most valuable cryptocurrency, has fallen by around 12% to its lowest level since January 2021 following the Celsius announcement, having touched $23,300. Late last year, Bitcoin reached value close to 70 thousand dollars. Ether is down 18% at $1,176, also hitting lows from January 2021.
Source: Observadora
