Celsius drives mercury up in the cryptocurrency market

Celsius drives mercury up in the cryptocurrency market

Will we soon witness the collapse of Celsius? Since June 12, the cryptocurrency lending and staking company has suspended withdrawals, sparking rumors of its insolvency.

Celsius looking for solvency solution

Created in 2018, Celsius is, operationally, a bank, with a lending protocol and aggregators, which creates value from the funds deposited in its accounts by its customers. Until last week when its withdrawal freeze sent panic to the cryptocurrency market, Celsius had more than $12 billion under management and lent about $8 billion at the same time.

On June 13, the company published a press release on its blog, the first lines of which already sum up the whole thing: “ Due to extreme market conditions, today we are announcing that Celsius is halting all withdrawals, swaps and transfers between accounts. We are taking this action today to put Celsius in a better position to meet its withdrawal obligations over time. Acting in the interest of our community is our top priority. »

This press release will come in an already difficult context where inflation had already put on edge traders who had not yet forgotten the tragedy of Terra.

In reaction to this situation of suspension of withdrawals, several regulators in the United States (Regulators of Alabama, Kentucky, New Jersey, Texas and Washington) and in other countries (

Speaking on his twitter page, Alex Mashinsky the CEO of Celsius tried to reassure: ” @CelsiusNetwork works tirelessly. We are focused on your concerns and are grateful to have heard so much testimony. Seeing you come together is a clear sign that our community is the strongest in the world. It is a difficult time; your patience and support are essential to us. »

Moreover, we learn that Celsius would have hired lawyers specializing in restructuring. According to an article in the Wall Street Journal, Celsius has hired lawyers from Akin Gump Strauss Hauer & Feld The company has hired lawyers who specialize in restructuring.

18.6% annual return

This is what Celsius promised its customers. This rate is quite close to the 20% promised by Anchor de Terra. Faced with the situation facing Celsius Network, many fear that this company will meet the same fate as Terra. Mike Novogratz, CEO of Galaxy Digital also believes that in the future, investors should be right about certain offers: ” When ecosystems go very fast, there’s a reason for that. Know what you are investing in. You don’t get 18% for free. »

Although initially it was widely thought that the rise in fear in the cryptocurrency market was mainly due to inflation, it is now undeniable that this Celsius situation has prompted many investors to prefer to secure their liquidity. . The consequence is the massive sale and fall of the global capitalization of the cryptocurrency market which today defends a support of 900 billion dollars.

Insolvency rumors now also concern Three Arrows Capital and Magic Internet Money. Bitcoin broke its $20,000 support, making it increasingly plausible to predict a bottom at $14,000 or even $8,000.

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Luc Jose Adjinacou

Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.

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