News Report
June 13, 2022

The Celsius Network halts withdrawals as CEL drops by 50 percent in 24 hours 

The Celsius Network halts withdrawals as CEL drops by 50 percent in 24 hours 

Celsius Network disabled withdrawals, swaps, and transfers from its platform, which led to its native token CEL losing up to half of its value. Celsius is one of the largest DeFi lending companies in the world that offers interest savings accounts, borrowing, and payments with digital and fiat assets. It manages almost 12 billion euros in customer assets

In an official letter to Celsius clients, the platform assured them that the company was facing “extreme market conditions.” This refers to the sharp falls in the cryptocurrency market over the last month. 

Last Friday, the U.S. revealed the country’s highest inflation rate in 40 years, which led to cryptocurrency prices tumbling. Today, Celsius’ decision to suspend withdrawals resulted in an even more severe market plunge.

Bitcoin has fallen 13% in the last 24 hours and now stands at $23,800, the lowest point since December 2020. Ethereum, the network on which Celsius is built, is currently trading at $1,224. ETH experienced a 24-hour drop of 16% and a 35% decline in the last seven days. The total crypto market cap has fallen below $1 trillion for the first time since January 2021.

Celsius (CEL) was down 60% on Monday and now trades at $0.31. In one year, the token has dropped about 97%, from around $8 to 20 cents. 

According to the official memo by Celsius, the company is acting in the best interest of the community and plans to restore withdrawals soon:

“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. Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers.” 

It didn’t take much time for Twitter’s cryptocurrency community to begin labeling Celsius as the next Luna. Many users commented that Celsius started blocking crypto withdrawals already a week ago. Moreover, two days ago, the CEO of Celsius, Alex Mashinsky, responded to one user that he was spreading misinformation and implied no one was having problems withdrawing from Celsius.

Mashinksy also backed out of the AMA event (Ask Mashinsky Anything) prior to halting withdrawals because he “lost his voice.”

It’s also concerning that Celsius transferred $320,000,000 worth of cryptocurrency to FTX a few days before the announcement.

Following the platform’s status, Nexo, a London-based competitor of Celsius, has announced on Twitter that it’s ready to buy any “remaining qualifying assets” of Celsius, “primarily its collateralized loan portfolio.” As the tweet said, the company is putting together an offer and will soon make it public. In October 2021, Celsius had a valuation of over $3 billion. 

Read related posts:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

More articles
Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

Hot Stories

Lido Launches stETH With Rebases On OP Mainnet

by Alisa Davidson
October 15, 2024
Join Our Newsletter.
Latest News

Lido Launches stETH With Rebases On OP Mainnet

by Alisa Davidson
October 15, 2024

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
Securitize Integrates With Zero Hash To Enable Purchase Of BlackRock’s BUIDL Through USDC Conversion
Business News Report Technology
Securitize Integrates With Zero Hash To Enable Purchase Of BlackRock’s BUIDL Through USDC Conversion
October 15, 2024
Gate.io Enters Strategic Partnership With Onramper For Seamless Fiat-To-Crypto Swaps
Business News Report Technology
Gate.io Enters Strategic Partnership With Onramper For Seamless Fiat-To-Crypto Swaps
October 15, 2024
Lido Launches stETH With Rebases On OP Mainnet
News Report Technology
Lido Launches stETH With Rebases On OP Mainnet
October 15, 2024
Synnax Introduces Credit Intelligence Platform, Setting New Standard In Credit Analysis And Financial Insights
Business News Report Technology
Synnax Introduces Credit Intelligence Platform, Setting New Standard In Credit Analysis And Financial Insights
October 15, 2024