Celsius says that it takes more time to restore the financial situation
Celsius says that it takes more time to restore the financial situation
- "to act in the interest of our community remains our priority and we will continue to work around the clock," said Celsius
- The company said that it was entertaining an open dialogue with supervisory authorities and civil servants about the payment stop
Celsius frozen a week ago on his platform due to a weak liquidity crisis. Now the crypto credit network has explained that it takes more time to restore its financial situation.
"We want our community know that our goal continues to be stabilizing our liquidity and our business. This process will take some time," said the struck lender in a Blogen on Monday.
Celsius said that there is open communication with supervisory authorities and civil servants regarding his decision to interrupt withdrawal, exchange processes and transmissions between user accounts.
The company justified the suspension with "extreme market conditions". It also stopped Twitter Spaces and ASK me anyding sessions so that it can concentrate on other upcoming matters.
"To act in the interest of our community remains our priority and we will continue to work around the clock," said Celsius.
Celsius generates sales (and thus yield for its users) by further seizure But centralized lenders such as Celsius can be forced to leave their different positions when payout applications exceed their liquid reserves.
A liquidity crisis is worn if the assets generated by these exits still do not cover the demand for withdrawals. Some Celsius users fear that their deposits together with Celsius' capital could be lost as a platform works
"Liquidation was a problem in all markets, including crypto," said Fernando Martinez, Head of Americas at the Digital-Ago-Asset platform OSL.
In order to explore his financing options, Celsius reported reported last week the banking giant Citigroup and the law firm Akin Gump Strauss Hauer & Feld.
The latest chaos on the cryptocurrency markets were still tightened by the actors of the industry, who are faced with such financial difficulties. The concerns of investors dissolved when Celsius suspended and suspended transfers on June 12, followed by the hedge fund company Three Arrows Capital, which faced a possible bankruptcy.
babel finance concluded the turbulence withdrawal on Friday, citing "unusual liquidity pressure".
The problems at Celsius and Three Arrows Capital were partly caused by the engagement in Lido Staking Ether (Steth), a replacement token for Ether (Eth) that is included in the Staking Protocol Lido Finance.
Steth was mostly considered a safe good; Effectively 1: 1 coupled with ETH and supported by ETH, which is set up within Ethereum Beacon, Chain. But an influx of ETH withdrawals from the decentralized trading protocol curve has made it more difficult to swap Steth, which leads to its value 6 % below that Nominal value.
In any case, at least five state supervisory authorities have primarily initiated investigations into Celsius' activities to ensure that such incidents do not repeat.
This is not the first time that Celsius attracts regulatory attention. In September 2021, the supervisory authorities of Alabama, New Jersey and Texas sent the company warnings and warnings If it did not offer registered securities (interest -bearing cryptoconts) in violation of state law and did not provide enough information about what it was doing with their deposits.
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The contribution "Celsius says that it takes more time to restore the financial situation" is not a financial advice.