Few days have been worse for the industry than the first half of the year.
On Monday, trading platforms halted withdrawals, companies cut jobs, and panicked investors dumped their holdings, dragging the market cap of cryptocurrencies below $1 trillion.
The digital currency fell below $23,000 for the first time in 18 months. In the past 24 hours, the most valuablecryptocurrencies have fallen.
The sell-off comes as investors pull their money out of riskier assets due to macroeconomic factors. It's worse than that. There was a fundamental distrust of Cryptocurrencies and the platforms that support them. It looked like panic selling was happening.
Some of Monday's lowlights are listed here.
Concerns have been growing that Celsius is in the midst of a liquidity crunch. Users can get a yield of up to 18% on their deposits. It is similar to a product a bank would sell.
The Celsius token went from $7 to 33 cents in the past year, but has plummeted in the past week. The largest holder of the token is Celsius.
The company's client funds have halved since October.
Celsius had previously admitted to losing funds as a result of the hack of BadgerDAO.
All withdrawals, swaps, and transfers between accounts have been paused due to extreme market conditions. The platform said in a memo that the move was designed tostabilize operations.
The memo said that the action was taken to put Celsius in a better position to honor its withdrawal obligations.
Concerns about the platform's solvency were raised after Celsius locked up its $12 billion incryptocurrencies. The news reminded people of what happened in May when a failed U.S. dollar-pegged stable coin project lost $60 billion in value.
The company's shares dropped to their lowest point since going public.
The pausing button was hit on Monday. The exchange halted withdrawals for three hours because of a stuck transaction.
The CEO said it would only take a half hour, but later said it would take a bit longer. Service was restored by 11:30 a.m.
A bunch of transactions got stuck due to low TX fees.
The exchange explained that the deposit problem was due to scheduled repair work.
Customers were reassured by the fact that all funds were Scrooge. That is a reference to the "Secure Asset Fund for Users", which was set up by Binance in the year 2018?
It was possible for holders to take out their bitcoins on other networks during the withdrawal outage.
BlockFi, a start-up backed by Peter Thiel, is cutting jobs.
The company said on Monday that it would be reducing its workforce. At the end of 2020 the company had more than 850 employees.
Thedramatic shift in macroeconomic conditions has had a negative impact on growth.
It is a common theme for companies in the space.
The company got naming rights to the arena that is home to the NBA's Los Angeles Lakers in a $700 million deal. The industry is in a "contraction phase" known as the "crypto winter", and earlier this month it was announced that 10% of its workforce would be laid off.
The hiring pause for theforeseeable future has been extended by the company.
The crash of UST has some investors rethinking their investment decisions.
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