Updated · Nov 16, 2022
Crypto Lending Giant Celsius Pauses Withdrawals, Transfers, and Swaps
Updated · Jun 13, 2022
On Sunday, Celsius said that it would pause withdrawals, transfers, and swaps on its platform, citing extreme market conditions.
Taking Necessary Action
Celsius is one of the largest crypto lenders in the world, claiming over $20 billion in assets at one point. According to its own website, over 1.7 million people consider the platform to be their home for crypto.
The company has struggled recently with its native token, CEL, and things only got worse after the announcement. At the time of writing, CEL is trading at $0.18 (according to Coinbase), showing a 94% decrease from April 8th, when it was worth $3. Not to mention that the token was trading at $7 twelve months ago.
Since last night, Celsius users are unable to withdraw, transfer, and swap assets between accounts.
According to reports, the firm had only a few more weeks' worth of financial resources to cover customer withdrawals and had to take action. Celsius says doing so is in the interest of the community. The company cited extreme market conditions as the reason. It is taking these actions to put itself in a better position to honor all of its withdrawal obligations.
The announcement came after one of the most brutal weekends we’ve seen in the cryptocurrency market. Bitcoin was already having a hard time, and amid horror 72 hours for digital money, BTC dipped to under $25,000 for the first time in 18 months.
Following the Celsius announcement, Bitcoin fell even more, and it sits at $24,304 (according to CoinDesk) at the time of writing.
Crypto markets have been under a lot of pressure in the last few months. This was mostly because of the collapse of some projects such as TerraUSD. Even after the Terra community revived the sunken ecosystem, it saw a dull start.
Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.
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