Celsius, one of the world's leadingcryptocurrencies lending platforms, has paused all transactions and withdrawals across its network, locking away roughly $12 billion in user assets as cryptocurrencies suffered a broad crash over the weekend.
Celsius is pausing all withdrawals, swaps and transfers due to extreme market conditions. Celsius said Sunday that it was taking action to put it in a better position to honor its withdrawal obligations.
$167 billion of the industry's market cap has been wiped out since Friday, when the ban was announced. CEL plummeted in value on Friday and plummeted again over the weekend.
The Florida-based company claims to have 1.7 million customers. As of November, Celsius was valued at $3.25 billion, following a $750 million funding round.
Celsius uses capital deposited on its platform to make loans to other users. Celsius pays users up to 30% interest each week. The downturn in the market has diminished the potential returns Celsius can earn on its investments.
The value of assets deposited on Celsius decreased by 50% between December and May.
Last month's collapse of Do Kwan's Terra blockchain, where the network's stable coin, UST, unpegged from the U.S. dollar, has throttled investor confidence in the broader market.
Alex Mashinsky, the founder of Celsius, reassured users that the company has no exposure to Luna or UST, and that there were norumors about it.
At @CelsiusNetwork we have stated several times publicly that we had minimal exposure to $Luna and $UST
I understand people who are trying to sell you competing services are spreading these rumors but you have to trust our @Twitter posts.
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