Nexo offered to pull its rival’s legs out of the mud, with an offer to buy its portfolio of assets. Celsius did not say when withdrawals would resume.
- Celsius froze withdrawals, trades and transfers.
- The lender appears to be dealing with liquidity issues.
- Nexo offered to buy the Celsius card.
One of the largest cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. lending services, Celsius Network a network refers to all nodes in the operation of a blockchain at any given moment in time. has paused withdrawals amid a steep price drop in the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset market.
On Sunday night, the platform a place to buy, sell and store cryptocurrency informed its customers that it was halting withdrawals, exchanges and transfers, citing “ extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “. In a blog entry The company assured that the measure sought to preserve and protect investors’ assets while stabilizing liquidity and operations in the market.
We are working with a singular focus: protecting and preserving assets to meet our obligations to customers. Our ultimate goal is to stabilize liquidity and restore withdrawals, swaps and transfers between accounts as quickly as possible.
Celsius did not provide a timeline for resuming withdrawals and the rest of the paused operations. Instead, it said it had “ a lot of work ahead”. y que estaba considerando varias opciones. “This process will take time and there may be delays.” he added.
Celsius freezes withdrawals indefinitely
Valued at more than USD $3 billion, Celsius allows users to deposit their Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. , Ethereum a decentralized open-source blockchain with smart contracts functionality. y Tether and receive weekly interest payments. Depending on the weather and the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. the platform offers up to 18% interest per year, as the platform points out. Tech Crunch . On their website, Celsius says that 1.7 million people recognise the platform as ” su hogar para las criptomonedas “.
The announcement follows a massive bearish move in the cryptocurrency market, which over the weekend saw hundreds of millions of dollars worth of liquidations. As of press time, Bitcoin is priced at around USD $23,500 and Ethereum to USD $1,230, some of its lowest levels in nearly two years.
La capitalización del mercado de criptomonedas global, por su parte, ha caído por debajo del billón de dólares por primera vez desde principios de 2021, mientras los mercados bursátiles más amplios también registran pérdidas.
According to CoinDesk the news also comes just a few months after theCelsius prohibit non-accredited investors in the United States from transferring funds. The company has also faced regulatory problems in the U.S., with law enforcement agencies issuing cease-and-desist orders against it.
For his part, as reported by that news media, reporter Colin Wu added that Celsius transferred around 104,000 ETH (about USD $135 million at press time) to exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. FTX in the last three days. Wu released the information in a tweet . Meanwhile, the price of the native token of Celsius, CEL plunged more than 50% after the announcements.
Nexo offers to buy Celsius portfolio
Shortly after the announcement, rival crypto lending platform, Nexo approached to express its interest in acquiring certain assets of the company. Celsius as an offer to help you solve your current problem.
In a carta which was shared on Twitter, Nexo dijo que estaba particularmente interesado en la cartera de préstamos garantizados, los activos de marca y la base de datos de clientes de Celsius . “ Nexo is in a strong liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and capital capital is most commonly defined as the large sum of money you would use to invest. position to easily acquire any remaining qualifying assets of Celsius, primarily its portfolio a collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. of secured loans. “, the lender wrote.
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
– Nexus (@Nexo) June 13, 2022
According toCrypto Briefing , the offer came a few hours after the suspension notice of Celsius which is among the three largest crypto lenders in the industry along with Nexo yBlockFi. Nexo did not mention a figure in his offer, but said it would be good until June 20.
As this news portal reports, Celsius would be dealing with what appears to be a cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. flow insolvency or severe liquidity crisis that has prevented it from meeting customer withdrawals on time. The company’s business model involves borrowing cryptoassets from retail investors and lending them to institutional clients or using them in DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. to generate high returns.
Previously, the CEO of Celsius Alex Mashinsky, had denied repeatedly that the company was dealing with insolvency or liquidity problems, it addsCrypto Briefing.
Article by Hannah Estefania Perez / DiarioBitcoin
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