• About
  • Contact
  • Privacy Policy
  • Terms and Conditions
Wednesday, May 28, 2025
The VR Soldier
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
The VR Soldier
No Result
View All Result

Celsius CEO “Loses Voice” Two Days Before Halting All Withdrawals

Celsius Network Crisis Is Bad News for Crypto

Will Izuchukwu by Will Izuchukwu
June 15, 2022
in News
Reading Time: 4 mins read
0
celsius network
22
SHARES
Share on TwitterShare on Facebook

The crypto-lending firm Celsius, which offers high-yield returns on user deposits, appears to be the latest to falter in the face of tightening financial conditions. It also came barely one month after the Terra-Luna stablecoin network collapsed.

Background

Celsius Network is a blockchain-based lending platform accessible through a free mobile app. Celsius Network is a big, venture capital-backed cryptocurrency company valued at $4.1 billion after its most recent Series B funding round in November 2021.

According to the Federal Deposit Insurance Corporation, traditional banks in the United States currently give a 0.07 percent annual income on savings accounts. In comparison, Celsius offers consumers a 17 percent yearly yield on deposits (FDIC).

Celsius Not Regulated

Crypto lenders such as Celsius are not regulated the same way traditional banks are, and they lack essential safeguards such as deposit insurance. This, of course, has been a part of US banking regulation strategy for a long time.

According to the network, Celsius’s loans are collateralized in Bitcoin, although not all are. Furthermore, there is no guarantee that it will be able to pay out consumers in the event of a surge in withdrawals, especially given that the Bitcoin price has dropped 40% since late last year.

This exposed some of Celsius’s issues, demonstrating how some of their positions are not properly managed.

Celsius Network Halts Withdrawals, Causing More Panic

The biggest red flag that things were seriously wrong with Celsius came when they abruptly suspended all withdrawals and transfers, thereby shutting out all of their customers.

.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2

— Celsius (@CelsiusNetwork) June 13, 2022

Celsius claims to be operating in the best interests of the community and wants to restore withdrawals as quickly as possible, according to their official memo.

Also, they already notified their community over the past 24 hours ago that they’d not be holding any Twitter Space for a while to attend to the issue at hand. This, however, doesn’t sound good as people want transparency and communication.

.@CelsiusNetwork is working around the clock for our community. It’s all hands on deck, so there will be no Twitter Spaces this week.

— Celsius (@CelsiusNetwork) June 14, 2022

The value of blockchain-based technology is in the fact that it is entirely open, and it appears that the Celsius community is losing faith in the network. 

Celsius CEO Mashinsky has been silent over the last six days and dropped out of the AMA (Ask Mashinsky Anything) event. That was before halting withdrawals, claiming he had “lost his voice.”

Sorry Celsians, unfortunately, @Mashinsky lost his voice and is unable to attend today. We look forward to rescheduling this Space! 💜

— Celsius (@CelsiusNetwork) June 10, 2022

The Celsius Network Crisis Is Bad For The Entire Crypto Industry

The current scenario with Celsius poses a short-term but long-term threat to the entire cryptocurrency sector.

In the short term, Celsius has a large amount of cryptocurrency. As of the time of writing, its website still claims to have $11 billion in assets on its platform. Celsius is one of the industry’s top lenders, and if they begin liquidating assets, the markets would be substantially affected.

Regulators Finally Having More Opportunities

When the Terra ecosystem experienced its crisis, we saw how regulators worldwide began giving warnings and constructing punitive rules to safeguard investors from similar events in the future.

Regulators will seize any opportunity to examine the business more closely and have the perfect pretext to do so, which is retail investor protection.

Every crisis in cryptocurrency which causes investors to incur massive losses is yet another excuse for regulators to bring up in the next meeting to regulate crypto further. It’s in the best interest of the crypto industry to prevent such crises from happening in the first place. It will help cryptocurrency flourish and prevent the need for hardcore regulation that will stifle development and hinder progress.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.

Follow us on Twitter @thevrsoldier to stay updated with the latest Crypto, NFT, and Metaverse news!

Previous Post

Top 3 Metaverse Crypto Coins Below $25 Million Market Cap (June 2022)

Next Post

Tron’s USDD Stablecoin Faces Same Fate as Terra Luna’s UST

Related Posts

Altseason Is Here—But Only for a Few Minutes
News

Altseason Is Here—But Only for a Few Minutes

May 28, 2025
Bitcoin Shakes as Trump Talks Tariffs Again
Featured

Bitcoin Shakes as Trump Talks Tariffs Again

May 27, 2025
Bitcoin Price Prediction For The Holiday—Breakout or Breakdown Coming
Market Analysis

Bitcoin Price Prediction For The Holiday—Breakout or Breakdown Coming

May 26, 2025
Bitcoin Gains Ground as Job Market Wobbles—Digital Gold to the Rescue?
News

Bitcoin Gains Ground as Job Market Wobbles—Digital Gold to the Rescue?

May 25, 2025
Altcoin Season Is Loading—But First, Let Bitcoin Do Its Thing
News

Altcoin Season Is Loading—But First, Let Bitcoin Do Its Thing

May 23, 2025
Dogecoin’s Ready to Bark Again—Could $0.30 Be the Next Fetch?
Market Analysis

Dogecoin Ready to Bark Again—Could $0.30 Be Next

May 20, 2025

Press Releases

Bitcoin Gains Ground as Job Market Wobbles—Digital Gold to the Rescue?
News

Bitcoin Gains Ground as Job Market Wobbles—Digital Gold to the Rescue?

by Alex Mercer
May 25, 2025

Introduction It seems the U.S. labor market has hit a pothole—again. The Kansas City Fed’s Labor Market Conditions Index (LMCI)...

Read more
Altcoin Season Is Loading—But First, Let Bitcoin Do Its Thing

Altcoin Season Is Loading—But First, Let Bitcoin Do Its Thing

May 23, 2025
Dogecoin’s Ready to Bark Again—Could $0.30 Be the Next Fetch?

Dogecoin Ready to Bark Again—Could $0.30 Be Next

May 20, 2025
Ethereum Climbs While PEPE Reloads—Who's About to Explode

Ethereum Climbs While PEPE Reloads—Who’s About to Explode?

May 18, 2025
Trump Meme Coins Spark Calls for Treasury Review

Trump Meme Coins Spark for Treasury Review

May 15, 2025
The VR Soldier

© 2024 The VR Soldier

Navigate Site

  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions

Follow Us

No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases

© 2024 The VR Soldier