In May, the crypto-staking network allegedly had $12 billion in client assets.
The token was trading at a low of $0.2117 at press time, down 52% in last 24 hours.
The crypto ecosystem has barely begun recovering from the Terra catastrophe. While all this was happening, Celsius, a well-known crypto staking and lending site looked to be going down.
The Celsius network was visibly in disarray throughout the long holiday weekend. In May, the crypto-staking network allegedly had $12 billion in client assets with 1.7 million participants. A blog entry on the suspension of withdrawals, swaps, and transfers was written by Celsius in response to this. When the platform wrote an extensive blog post, it said it was obliged to do so by “extreme market circumstances.”
The post read,
“We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”
Another Blow After Terra Ecosystem Crash
As a result, Celsius’ native token, CEL, has fallen by a whopping 52 percent in a few hours. The token was trading at a low of $0.2117 at press time.
The community was terrified after Terra’s demise. Many of them seized at the chance to connect Celsius’ liquidity problem to Terra’s fall. Intense outrage was shown in the community when the network decided to halt withdrawals, swaps, and transfers in response to the outcry.
Meanwhile, the network delivered over 50,000 ETH to the San Bankman Fried crypto exchange, FTX, valued at around $66.97 million. Before Celsius halted withdrawals, this transaction was completed. In addition, around 3,500 WBTC worth $89 million was moved to FTX less than an hour before the suspension.