Celsius, one of the top crypto lenders, halted withdrawals on its platform last week due to a terrible liquidity crisis. And now, the crypto lending network has stated that it will take more time to get back on track financially as they are still recovering from financial crises.
Celsius is a cryptocurrency lending and interest-paying Decentralized Finance (DeFi) network. DeFi provides individual financial services on a decentralized public blockchain like lending, borrowing, and interest-bearing investments.
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The notification of “pausing all withdrawals, swaps, and transfers between accounts” from Celsius comes after the US Labor Department revealed CPI inflation statistics on June 10, indicating that macroeconomic factors are placing more pressure on the cryptocurrency market, which is already under duress.
Celsius claimed in a Sunday night blog post on June 19 that its foremost priority is maintaining its finances and operations. It will, however, take time to sustain its financial stability.
As stated:
We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time.
Furthermore, according to the release, they are in open discussion with authorities and officials regarding the decision to freeze withdrawals, swaps, and transfers between customer accounts. They are attempting to resolve the situation:
We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.
This action comes after significantly to the market’s collapse, as Bitcoin’s price plummeted below $20,000 over the weekend, trading 70% lower than its all-time high.
In its post, the company also announced that it would stop its Twitter Spaces and Ask Me Anything (AMA) sessions to concentrate on overcoming obstacles and meeting its community’s expectations.
As per the statement stated:
We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.
Last Friday, Celsius canceled their Youtube AMA session just before it started, with CEO Alex Mashinsky giving a message in a video on the company’s YouTube channel, which is similar to the company’s current statement.
Alex Mashinsky stated:
We will be pausing AMA’s for now, so Celsius can focus on this very important work for the community.
When Celsius canceled the AMA session, many frustrated users expressed their dissatisfaction on Twitter with the Celsius platform.
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Celsius isn’t the only crypto lender under criticism due to the current market situation. Babel Finance, a Hong Kong-based cryptocurrency exchange, froze withdrawals and redemptions on Friday as well.
WatcherGuru Tweeted on June 17 stating that:
Babel Finance halts #crypto withdrawals and redemptions, citing “unusual liquidity pressures.”
As another company has halted withdrawals, implying that the crypto market is might about to undergo another fall.
Featured image is from Flickr and chart is from TradingView.com
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