- Celsius stated the transfer is important with a purpose to stabilize liquidity and operations
- The community warned there could also be a number of delays within the days forward
Crypto lending platform Celsius introduced on Sunday evening, June twelfth, that it will be pausing withdrawals, swaps and transfers between accounts on its platform attributable to “excessive market situations.”
“We’re taking this motion at the moment to place Celsius in a greater place to honor, over time, its withdrawal obligations,” the agency stated in a blog.
Celsius stated its resolution to pause withdrawals was made to “stabilize liquidity and operations.”
“There may be a whole lot of work forward as we think about varied choices, this course of will take time, and there could also be delays,” the community added.
The announcement follows a decline in cryptocurrency costs over the weekend and claims on social media that the community is going through a liquidity disaster. It stays to be seen whether or not different lending platforms could have an identical impression.
Celsius’ native CEL token has plunged in worth as fears over the platform’s solvency have grown. The token dropped greater than 60% from $0.36 to $0.14 between 10pm and 11:30pm ET on Sunday June 12, based on data from Blockworks Research. It’s now down over 98% from its all-time excessive of greater than $8.00 simply over a 12 months in the past.