Due to “extreme market conditions,” leading cryptocurrency lender Celsius Network has announced a halt to all withdrawals, swaps, and transfers between accounts.
The decision resulted in a nearly 55% drop in the price of its digital token ‘CELL,’ which fell to as low as 19 cents.
“We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations,” the crypto lender said in a statement late on Sunday.
Celsius Network is a Blockchain-powered lending platform that can be accessed via a free mobile app.
“Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets and we are working diligently to meet our obligations,” the company said.
According to the company, the decision was made to stabilise liquidity and operations “while we take steps to preserve and protect assets.”
In November of last year, Celsius was valued at $3.25 billion.
According to its website, the CEL token promises “actual financial rewards,” with up to 30% extra weekly returns. It’s unclear what caused the most recent drop.
Terra’s failure has reduced demand for high-yielding lending instruments.
The shocking implosion of the TerraUSD and Luna cryptocurrencies last month sent many investors into a frenzy, with some claiming their entire assets had been blown up or leaving suicidal messages.
The once-bullish TerraUSD and sister coin Luna had lost nearly all of their value in a crash, sending shockwaves around the world.
