The company added that it is also pausing its Twitter Spaces and Reddit Ask Me Anything (AMA) sessions “to focus on navigating these unprecedented challenges and trying to fulfill our responsibilities to our community.”
Last Sunday, June 12, Celsius froze withdrawals, trades and transfers between accounts citing “extreme market conditions”, in a move that shocked the entire cryptocurrency industry.
The decision played a significant role in the overall market decline, which led to the price of Bitcoin to sink below $18,000 over the weekend for the first time since 2020.
Meanwhile, Celsius’s main investor, simon dixonCEO and co-founder of BnkToTheFutureoffered to help the company by deploying a “financial innovation” similar to the one used to save the crypto exchange Bitfinex, according to Bloomberg.
“Our industry came back stronger from each disaster and now is the time to offer support from the bottom up in compliance with the regulations we have always followed,” Dixon wrote.
Dixon’s offer came on the heels of a series of reports that the Canadian pension fund is unlikely to CDPQ (Caisse de dépot et location du Québec) and WestCap GroupNew York-based , which led Celsius’s $750 million Series B funding round last year, now come to the rescue of the embattled cryptocurrency lender.
Meanwhile, after a turbulent week in crypto market prices, some observers point to tentative signs that prices have bottomed out, at least for now.
“As forced sellers appear to be driving much of the recent selling side, the market may begin to watch for signs of seller exhaustion emerging in the coming weeks and months,” a report from glass nodea company dedicated to processing public data and information hosted on cryptographic data networks (Blockchain).
So far this year, the crypto market has faced two “distinct phases of capitulation” since peaking at around $69,000 in November, Glassnode said.
The first was caused by collapse of stablecoin TerraUSD in early May, and last week’s was driven by “massive deleveraging across the industry, both on-chain and off-chain.”
Current trading patterns in Bitcoin and Ether indicate that some large cryptocurrency holders are “chasing sell-offs to profit from driving out other players,” he told Bloomberg. Chiente HsuCEO of decentralized finance platform ALEX.
Source: Ambito
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