Highlights –
- The sudden announcement sparked discussions and resulted in a 60% tumble of the company’s token’s price in just one hour to 19 cents.
- In line with Celsius’ commitment to its customers, users will continue to get rewards during the pause.
Celsius Network, a cryptocurrency lender, announced recently that it would be pausing withdrawals, transfers, and swaps between accounts due to extreme market conditions. The company was valued at a little over USD 3 million last year end. But this sudden announcement has sparked discussions and resulted in a 60% tumble of the company’s token’s price in just one hour to as low as 19 cents.
Celsius allows its users to deposit Tether, Bitcoin, and Ethereum to receive weekly interest payments. The company offers as much as 18% interest annually, subject to the token and the time horizon. Celsius has mentioned that nearly 1.7 million people call it “their home for crypto.” The company boasts high-profile investors like the stablecoin-issuer, Tether International, and the Canadian pension fund, Caisse de Dépôt et Placement du Québec.
The company announcement comes at a time when the cryptocurrency market has seen one of the most brutal weekends in history, which saw liquidation worth hundreds of millions of dollars.
In its newly published blog, the company said that in the interest of the larger community, it is working toward stabilizing liquidity and operations while taking the proper steps to preserve the assets. In line with Celsius’ commitment to its customers, users will continue to get rewards during the pause.
“Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets and we are working diligently to meet our obligations.”
“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” wrote Celsius.
