The Celsius Network has put a halt to withdrawals after noticing that CEL has plummeted by 50 percent within 24 hours, according to recent reports.
As we navigate through challenging market conditions, the Celsius Network recently suspended withdrawals and transfers from its platform. This decision has led to CEL, the platform's native token, losing nearly half of its value. As a major player in the DeFi lending space, Celsius provides services like interest-earning accounts and borrowing solutions involving both digital currencies and traditional money, currently managing close to €12 billion of client assets.
In a communication addressed to its clients, Celsius clarified that they were responding to 'extreme market conditions,' a reference to the recent notable downturns in the cryptocurrency marketplace seen throughout the past month.
Last Friday, the U.S. revealed These tough market developments come amidst the country's highest inflation rate in 40 years, which has further pressured cryptocurrency valuations. The recent choice by Celsius to suspend withdrawal activities contributed to an even sharper decline in market prices.
Bitcoin has slid by 13% over the last day, bringing its value down to $23,800, marking its lowest figure since December 2020. Ethereum, the blockchain supporting Celsius, is now priced at $1,224, experiencing a 16% drop in just 24 hours and a significant 35% decline over the past week. The cumulative market capitalization of cryptocurrencies has now dipped below $1 trillion for the first time since January 2021.
CEL, the token associated with Celsius, saw a drastic decrease of 60% on Monday, trading at approximately $0.31. Over the past year, it has plunged nearly 97%, dropping from around $8 to just 20 cents.
According to the official memo In response to concerns raised, Celsius reassured the community that it is acting in their best interests and is working towards resuming withdrawals imminently.
"Our decision to take this necessary step is aimed at stabilizing liquidity and operations, protecting assets, and ensuring that our users continue to earn rewards during this temporary suspension, reaffirming our commitment to them,\" stated the company.
It didn't take long for members of the crypto community on Twitter to label Celsius the next big concern in the market. Many were quick to remind others that withdrawals had already become problematic for Celsius users over the week, and just two days before this announcement, Celsius's CEO, Alex Mashinsky, dismissed an individual's claim about withdrawal issues, suggesting no one was facing such challenges. Luna Just prior to announcing the suspension of trading and withdrawals, Mashinsky had posed a question on social media, asking if anyone was having trouble withdrawing from their Celsius accounts, only to implement a pause two days later citing 'extreme market conditions.'
It’s quite a coincidence that all these events unfolded right after the CEO missed the AMA due to a sore throat.
It’s also concerning that Celsius transferred In light of Celsius's current situation, its competitor Nexo, based in London, announced on Twitter their willingness to acquire any 'remaining qualifying assets' of Celsius, particularly focusing on Celsius's collateralized loans. According to their tweet, they are currently formulating an offer which they plan to disclose shortly. Not too long ago, in October 2021, Celsius had a significantly high valuation.
Nexo is in a robust position with adequate liquidity and equity, ready to acquire remaining qualifying assets from Celsius, especially their collateralized loan portfolio. We are drafting a proposal for Celsius and will share it publicly soon. valuation of over $3 billion.
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In line with the Trust Project guidelines Agne is a journalist focusing on the latest innovations and happenings in the metaverse, artificial intelligence, and Web3 spheres for Metaverse Post. Her enthusiasm for storytelling has allowed her to conduct various interviews with key experts, constantly on the lookout for intriguing narratives. Holding a Bachelor’s degree in literature, she possesses a diverse write-up background that spans various topics like travel, art, and culture. Additionally, she has volunteered as an editor for an animal rights charity, striving to promote awareness around critical animal welfare issues.
