With the cryptocurrency markets already in free fall, crypto lending platform Celsius has announced that it is abruptly pausing all withdrawals, trading and transfers. Because of this, Celsius’ altcoin project CEL has plummeted. Meanwhile, various crypto companies shared their comments about Celsius. Here are the details…
3 companies have announced for altcoin CEL: The first is BlockFi
Celsius was launched in 2017 and is for customers to deposit cryptocurrencies loaned to other crypto companies offers high returns. It shares this business model with BlockFi and Nexo, among other players. Last year, many regulators made it clear that they view these high-yield crypto loan products as unregistered securities offerings. By last September, four states (New Jersey, Texas, Alabama and Kentucky) had sent ceasefire letters to Celsius. That month, Coinbase shut down its own lending product after the SEC threatened to sue if it was released.
In response to the Celsius news (and inevitable comparisons), BlockFi CEO Zac Prince said late Sunday that all BlockFi services are “continuing to operate normally. ” he tweeted. Prince stated that his services that operate smoothly include items such as earning interest, loans, making transactions, deposits and withdrawals. He states that risk management continues to work without any problems, and states that they do not have any positions in stETH. It is stated that they have not had any positions in GBTC since the autumn months.
Nexo wants to support Celsius
Celsius suspended all web footage on Monday; users cannot access their funds. In an open letter, as we reported on Kriptokoin.com , Nexo made an official offer to buy the assets of Celsius Network after the withdrawal was frozen. In summary, the Nexo team would get all the credits from Celsius and win the customer database. The Nexo team has given the Celsius team seven days to respond as the offer expires on June 20.
Additionally, Nexo has assured investors that the funds are safe. The Nexo representative said that in September, it was the first cryptocurrency lender to make its documents public in real time, inviting all competitors and responsible crypto platforms to follow their lead.
statement came from Tether
Tether, behind USDT, which is the largest stablecoin with its market value, also made statements about Celsius. Tether explained that volatility in Celsius has no effect on its own reserves. Stating that this collapse was an unfortunate result of market volatility and conditions, the company stated that there is no relationship between Celsius and its reserves and stability. Tether stated that there is no correlation between its assets, although “Celsius contains an investment that represents a minimum part of their equity.”
