LONDON: Major US cryptocurrency lending company Celsius Network froze withdrawals and transfers on Monday, citing"extreme" market conditions, sparking a sell-off across crypto markets.
Crypto lenders make money by lending - also for a fee, typically between 5 per cent-10 per cent - digital tokens to investors or crypto companies, who might use the tokens for speculation, hedging or as working capital. The lenders profit from the spread between the interest they pay on deposits and that charged on loans.Crypto lending has boomed over the past two years, along as decentralised finance, or"DeFi," platforms.
Traditional investors and venture capital firms, from Canada's second-biggest pension fund Caisse de Depot et Placement du Quebec to Bain Capital Ventures, have backed crypto lending platforms.Unlike traditional regulated banks, crypto lenders aren't overseen by financial regulators - so there are few rules on the capital they must hold, or transparency over their reserves.
Other major lenders are also based in the United States. New York-based Genesis originated loans of US$44.3 billion in the first quarter, with US$14.6 billion in active loans as of March.
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Crypto firm Celsius pauses all transfers and withdrawals between accountsCrypto lender Celsius Network Ltd said on Sunday it was pausing all swaps, transfers and withdrawals between accounts, due to extreme market conditions.'We are taking this necessary action... in order to stabilize liquidity and operations while we take steps to preserve and protect assets,' the company sa
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Crypto firm Celsius pauses all transfers, withdrawals as markets tumble:Cryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to 'extreme market conditions', the company said on Monday, in the latest sign of pressure in the crypto industry. Bitcoin extended earlier declines after Celsius's announcement, falling more than 6 per cent Are you a crypto sucker? bought alittle more. invest in future, no fear.
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Crypto firm Celsius pauses all transfers and withdrawals between accountsCryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to 'extreme market conditions', the company said on Monday (June 13), in the latest sign of pressure in the crypto industry. Bitcoin extended earlier declines after Celsius's announcement, falling more than six per cent to as low as $24,888 (S$34,614), an 18-month low. Ether, the world's second-largest...
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