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Highlights
- Celsius Network said that halting withdrawals, account transfers, and swap is a responsible decision.
- At the time of writing, the CEL crypto was down by 48 per cent, trading at US$ 0.2109 per token.
- Celsius Network is a financial services platform for crypto users.
Celsius (CEL) crypto price crashed massively after Celsius Network announced that it is pausing all withdrawals, transfers, and swaps between accounts.
At the time of writing, the CEL crypto was down by 48 per cent, trading at US$ 0.2109 per token. Meanwhile, the market cap was reduced to US$ 50.4 million, according to CoinMarketCap data.
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The valuation of the crypto market has declined significantly to US$ 999.2 billion as the price of Bitcoin has dropped by 10 per cent to US$ 24,834.06 apiece, and the majority of the virtual currencies were trading in the red at 3 AM EST.
After several months, the crypto market capitalisation is in billions. At the beginning of this year, the global crypto market cap was above the US$ 2 trillion mark and has declined over the last few months.
Why has Celsius Network halted withdrawals?
Celsius Network has announced that due to the current market conditions, it has taken this decision to put the network in a better position to meet its withdrawal obligations over time.
The network said its first aim is to act in the best interests of community members. Celsius Network has activated a section in its Terms of Use to allow the implementation of its risk management strategy.
As the move is distressing, Celsius Network said that halting withdrawals, account transfers, and swap is a responsible decision to protect and maintain assets in order to meet customer responsibilities.
The network's ultimate goal is to quickly restore liquidity, including withdrawals, swaps, and transfers between accounts.
Bottom line
Celsius Network is a financial services platform for crypto users. Meanwhile, the CEL crypto performs functions like boosting user payouts and other internal functions.
The network claimed that CEL crypto gives actual financial rewards and promises 30 per cent extra returns weekly. Hence, what has triggered this move is unclear.
Due to Terra's failure, investors might be skeptical. As Celsius Network has halted all activities, investors must worry as the market conditions are expected to remain extremely volatile, and we don't know when withdrawals and swaps will resume.
Also Read: Why is Harmony (ONE) crypto rising today?
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