AUS
NZ
UK
CA
USA
IND
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.
Also Read: What is Firepin token? All you need to know about FRPN crypto
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?
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
