Celsius is still in trouble. This is the essence of the relatively short message posted on the website of the exchange, in which the group’s future operations are described, even if vaguely, in an effort to get back to a normal life.
On Sunday, June 12, the popular crypto lending platform, Celsius Network, announced the suspension of withdrawals, swaps, and transfers between accounts to its 1.7 million users. The company is explaining the halt as a decision made for the Celsius community’s best interest. As a result of the volatility of the current crypto market, they said the pause is necessary to stabilize liquidity and operations.
This short message from few days ago, describes at least roughly the internal situation within the group.
“It has been one week since we paused withdrawals, Swap, and transfers. We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time. As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution. We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community. Acting in the interest of our community remains our priority and we will continue to work around the clock. We are grateful for your continued support”.
Despite being a well-intentioned message, it left a bitter taste in the mouths of many who still have their capitals frozen, who still don’t have idea of when they are getting them back, without actually saying anything to prevent the worst.
With concerns from many flooding in, Celsius CEO Alex Mashinsky took to Twitter to address customer concerns. He wrote,
“Celsius Network team is working non-stop. We’re focused on your concerns and thankful to have heard from so many. To see you come together is a clear sign our community is the strongest in the world. This is a difficult moment; your patience and support mean the world to us.”
Therefore we should not expect a quick return to normality, and users who have had their withdrawals frozen, and who will most likely have to wait a while before they are able to access to the platform, and their funds.
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So in this moment of pressure on the crypto market, Celsius has paused withdrawals, swaps, and transfers, which has led five states to launch investigations into the lending platform. As a result of this concern for the company’s stability increases, its token has plunged in value.
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It is therefore advisable not to jump into these trades in a revenge-seeking manner.
Even though many have lost significant amounts of money as a result of the latest market downturn, it is vital that we remain aware of the real situation of Celsius, which is, at the very least, all but resolved according to the above-mentioned statement.