Celsius pauses crypto withdrawals

By Scoop
June 14, 2022 · less than 3 min read

Crypto crash turns to crypto chaos.

Sign of the times

The great crypto selloff is showing no sign of slowing down. After holding steady for a few weeks, Ethereum resumed its tumble this weekend, leading to chaos and memes alike across social media channels. And when we say chaos – we really mean it.

Major crypto lending platform, Celsius, paused withdrawals from its platform, citing deteriorating crypto trading conditions as the reason. The platform has around $12 billion in customer assets, with around 1.7 million active users. So, for anyone looking to grab their money and run, we’ve got bad news.

The butterfly effect

The impact has been widespread. From being mooted as digital gold many moons ago to today having few confident investors, crypto firms are struggling to convince people to hold their coins. Since the announcement, Celsius’ own coin fell sharply, losing about 45% of its value.

It’s not the first time a crypto exchange has paused withdrawals owing to crypto chaos, and it comes with no small amount of controversy. Pausing withdrawals can effectively protect investors and their money from market turmoil – but by locking in people’s money, it means people can’t get it back if they need it.

It’s a controversial and bold move, and there’s no saying if it will actually protect or worsen confidence in crypto markets at a time when there’s little interest in risky investments.

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