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Crypto lending service Celsius has paused all withdrawals, as a result of “extreme market conditions.”
In addition, the company is also pausing its swap and transfer products, it said in a blog post. It did not give timeline for when withdrawals would be resumed.
The company blog post said:
“We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”
Since the news came out, the Celsius CEL token dropped more than 70% after which it gained a little and dropped yet again:
On-chain analyst Will Clemente, who appears weekly on Anthony Pompliano’s podcast to discuss latest trends, believes Celsius is the next after Luna to take the fall:
Celsius has been under scrutiny as off late. It recently replaced its Chief Financial Officer, after previous CFO Yaron Shalem was arrested by Israeli police in 2021. The firm also faced some regulatory concerns with law enforcement entities putting up cease-and-desist orders against it.
What this latest debacle means for the crypto space is to be seen, short term it is likely to put a dent in trust, while looking at the long-term, market could benefit from taking out the weak players of the industry.
Bitcoin and other crypto assets dropped along. Bitcoin is currently trading at $25,522 according to CoinMarketCap data.