Almost exactly one month after the Terra blockchain meltdown, crypto markets crashed below $1 trillion as a new wave of panic struck crypto traders. Almost $1 trillion of investors wealth has been wiped out from crypto markets since Terra debacle. (Read why crypto market crashed here)
Top two cryptos – Bitcoin and Ethereum – suffered worst price declines of this year. While BTC fell below the $22,000 level, Ethereum went down to $1155, according to data on CoinMarketCap.
The current crash in crypto markets is said to be triggered due to fears of a new systemic threat to the crypto markets, leading to a sell-off. While the market was already in the “extreme fear” zone due heightened inflation tensions, traders panicked further after crypto lending service Celsius pauses withdrawals amid “extreme market conditions”. Here we take a look at what is Celsius and all that it has said:
What is Celsius?
Celsius is a bank equivalent of the crypto world. It is a crypto platform providing curated services like Earn, Borrow, Buy, Swap etc.
Celsius allows users to borrow against their crypto holdings at APR.s starting at 0.1%. It also allows them to earn interest on their crypto deposits with Celsius.
What Celsius said
In a blog post dated 13th June, Celsius said it was pausing all withdrawals, swap and transfers between accounts due to “extreme market conditions”.
Celsius said it has taken such decision so that it would be “in a better position to honour, over time, its withdrawal obligations.”
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” Celsius said. It, however, added that customers will continue to accrue rewards during the pause.
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Celsius has not yet provided a timeline for resuming withdrawals.
Earlier, Celsius had told non-accredited investors that could no longer transfer funds.
CEL token price
Celsius boasts of having 1.7 million customers.
The price of Celsius Token (CEL) fell over 50 percent after it announced the decision to pause withdrawals. However, it has recovered since then, On Tuesday (June 14th), CEL price had recovered 29 percent, trading at $0.2829.
(The article was originally published on 14th June, 2022)
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)