The crypto lender Celsius got the crash. CEL token tanks 70% in 1 hour after company pauses withdrawals to stabilize liquidity.
Now as the new wave of the crypto crash arrives sending Bitcoin and all prominent altcoins deep down, there is a new catastrophe on the horizon.
Celsius, a prominent crypto lender, has made the news. It seems like Celsius crash might be as big as the one with Terra.
Celsius crypto crash
The crypto lender Celsius paused all customer withdrawals and swaps on Sunday night, citing liquidity issues.
It’s CEL token quickly went off a cliff. With crypto markets already in freefall, it shouldn’t come a surprise.
The Celsius blog on Medium claimed that this action was to put Celsius in a better position to honor, over time, its withdrawal obligations.
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets. Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers,” the company stated.
The company’s CEL token quickly reacted. In just one hour CEL fell 70%. Sunday morning it was as much as $0.49. By the evening it fell to a remarkably low $0.15.
Twitter went mad, unsurprisingly.
Crypto investors drew comparisons to the recent Terra collapse. As well as to infamous crypto Ponzi scheme Bitconnect.
The rest of the crypto market was not having a good day either on Sunday when Celsius shared its news. Though nothing compared to Celsius epic crash.
Bitcoin was down 9% on Sunday at the time of writing, Ethereum down 9%, BNB down 9%, Cardano down 11%, Solana down 12%, and Dogecoin down 9%.