What is Ecosystem of Celsius | Reason for Current Crypto Market Crash
What is the Ecosystem of Celsius?
Celsius is the crypto world's equivalent of a bank. It is a cryptocurrency platform that offers curated services such as Earn, Borrow, Buy, Swap, and more.
Crypto markets fell below $1 trillion almost exactly one month after the Terra blockchain breakdown, as a new wave of panic hit crypto speculators. Since the Terra catastrophe, about $1 trillion in investor money has been wiped out of crypto marketplaces.
The top two cryptos, Bitcoin and Ethereum, have seen their prices plummet the most this year. While Bitcoin has dropped below $22,000, Ethereum has dropped to $1155, according to CoinGabbar data.
Celsius
Celsius is the crypto world's equivalent of a bank. It is a cryptocurrency platform that offers curated services such as Earn, Borrow, Buy, Swap, and more.
Users can borrow against their crypto holdings at APRs as low as 0.1 percent with Celsius. They can also earn interest on their cryptocurrency deposits with Celsius.
Reason for fear
Fears of a new systemic threat to the crypto markets are reported to have caused the recent crypto market crisis, which has resulted in a sell-off. While the market was already in a state of "extreme dread" due to rising inflation fears, traders became even more concerned after cryptocurrency lending provider Celsius halted withdrawals due to "severe market conditions." Here's a look at what Celsius is and what it has to say:
Celsius claimed it was stopping all withdrawals, swaps, and transfers between accounts due to "extreme market conditions" in a blog post dated June 13th.
Celsius stated that company made this move in order to be "in a better position to honour its withdrawal obligations over time."
"We are taking this important move for the benefit of our whole community," Celsius stated. "We are stabilising liquidity and operations while taking steps to preserve and protect assets." Customers will, however, continue to earn incentives during the delay, according to the company.
Celsius has not yet stated when withdrawals would be resumed.
Celsius had already informed non-accredited investors that they would no longer be able to transmit monies.
After the announcement, the price of Celsius Token (CEL) dropped by more than 50%. According to CoinGabbar, the CEL price has regained 29 percent and was trading at $0.2828 at the time of writing.
