Celsius overheated – Suspension of all operations and withdrawals on your platform

When some approach the general decline in the cryptocurrency market as a cleanup, necessary or not, it’s not just empty talk. In fact, this difficult period will make it possible to identify solid players from those who are less or nothing. And so much to say that in the field, the Celsius cryptocurrency lending platform (CEL) definitely leans into the camp of victims of this violent digital mop. As it is official, all operations and fund transfers are suspended until further notice. Story of a programmed collapse…

The temperature just rose a little to the Celsius platform. The latter has already been targeted by regulatory authorities since the end of last year. And at the origin of many doubts about the sustainability of its offers, certainly attractive, in relation to its economic model. Notices swept, at the time, out of control by a growing horde of institutional investors. But obviously, things have just taken an alarming turn.

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This news can be summed up in a simple question: can we trust, at least in the long term, financial solutions that promise unlikely returns on cryptocurrency deposits? Spoiler alert: the answer seems to be no! In any case, this is what the situation the Celsius platform finds itself in suggests. But also the difficulties encountered by its competitor BlockFi, in “negotiation” with the American Security and Exchange Commission (SEC) for several months.

Celsius – Withdrawals and On Hold Transfers

The significant difficulties encountered by the Celsius platform have been known for a few weeks. With the thinly veiled prospect of an ongoing bankruptcy of this central and centralized player in the cryptocurrency lending industry. And even if there is nothing that confirms – at least legally – this descent into hell, everything indicates that things are getting complicated in this case. Especially considering the latest official statement, posted today on the company’s Twitter account:

Celsius suspends all withdrawals, exchanges and transfers between accounts. Acting in the interests of our community is our top priority. Our operations continue and we will continue to share information with the community. »

Celsius

In fact, this announcement is accompanied by a suspension of all fund movements in relation to the Celsius platform. And to be more precise, this involves all transfers that make it possible to withdraw cryptocurrencies still present in their wallets. But also exchange transactions or movements internal to the platform itself. With the main reason cited being “extreme market conditions” which are just the cyclical movements of this admittedly volatile ecosystem, but it really is a surprise!

CEL cryptocurrency plummets -77%

However, nothing to worry about, according to the blog post published by the company around the same time. Because such a procedure would ultimately aim to “put Celsius in a better position to honor, over time, its withdrawal obligations. » OK ! But it is impossible not to ask the following question: does this need concern its current users or possible future liquidators? Because if we turn to the course of their cryptocurrencies, nothing reassures us.

Celsius (CEL) – TradingView

Indeed, at the same time, Celsius platform native CEL cryptocurrency has seen a significant drop of more than 77% in the last 24 hours. With a price that rose during that period from $0.43 to less than $0.1 ($0.09 at the height of this drop). And a collapse of over 97% last year, which however saw its price hit an ATH above $8 last June (YTD).

However, Celsius states, your recent decisions are made to “protect” your community, which will surely run away as soon as it can (if that’s still really an option). When highlighting other projects of the same type, such as BlockFi or Nexo, which asks which could allow them to better withstand these “extreme market conditions. » A trend to follow closely…

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