Celsius/Kryptos: Heat is on | Finance times

Celsius says that it is "proud to provide a platform with curated services that have been abandoned by large banks". According to the well -known fintech, this includes "fair returns, no fees and lightning -fast transactions" for lending cryptocurrencies.

This last braggeri no longer seems to be correct. On Sunday, Celsius, who claimed in May, gave customer assets of almost 12 billion Bitcoin for a fifth since Friday, the lowest level in 17 months.

names like Celsius-which advertises an annual percentage of 18.63 percent-crypto enthusiasts seemed to offer the best of all worlds. Customers deposited crypto, which Celsius awarded for a fee. Apparently there was the chance of large returns together with capital preservation and immediate liquidity.

So much for the dusty "Tradfi" banks that adhere to the securing of insertion funds. Celsius, like other crypto fintechs, can even boast of well-known financiers among his supporters.

But the crypto lender cannot set free lunch or immunize free lunch for free lunch. Celsius customers frightened the price volatility to reclaim their assets. The platform apparently did not have available funds. His own coincel has lost half of its value in the past few days.

As with every financial debacle, the bosses expressed their trust until they surrendered.

The problems at Celsius are a variation of a topic that was imposed by the bombed -out stablecoin terra. His creators had promised that, like a money market fund, his value would remain at $ 1 per piece. But the overall concept of stability only applies if the underlying assets rise. Crypto is predictable by the broad re -evaluation of risk systems in the course of the accelerating inflation, higher interest rates and a possible recession.

bank failures and their consequences finally led to strict capital requirements, deposit protection and regulatory stress tests. In view of the uncertainty as to whether banking or securities law applies, the supervisory authorities crypto have slowly taken over. While the authorities find this out, the number of victims of lively website banners will increase.

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