Major crypto lender Celsius Network has announced that it is putting all withdrawals on a temporary pause.
This means that account holders will not be able to move or retrieve funds for the time being.
It has immediately affected the company’s native token which crashed rapidly, losing more than 60% of its value within an hour of the announcement. The token has bounced back now, from previously trading at $0.19 to $0.22.
The company published a blog post in which it explained its motivation. “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations”, the statement read.
Celsius is battening down the hatches, following in the footsteps of other companies in the space, after a highly challenging and volatile week for cryptocurrencies.
Celsius is not the only company taking precautions. Coinbase has paused recruitment but denied a bankruptcy was on the cards for the company – a prospect feared by independent observers after the company posted nearly $430m in first-quarter losses.
Gemini, the cryptocurrency exchange owned by the Winklevoss twins, said it will be cutting hundreds of jobs.
Crypto lenders like Celsius are indeed operating in a very difficult landscape in untested waters insofar how rapid downturn the market has been.
If you want to stay away from such speculative businesses, there is a simple way for you to make use of all of your cryptocurrencies.
Just visit gaming websites that accept cryptocurrency, such as 1xBit, FortuneJack or Bitcasino, io.