Celsius cryptoplatform stopped sampling because bitcoins reserved 13%

Celsius cryptoplatform stopped sampling because bitcoins reserved 13%

Celsius founder and CEO Alex Mashinsky when he appeared in a promotional video for Celsius uploaded to YouTube.

Celsius founder and CEO Alex Mashinsky when he appeared in a promotional video for Celsius uploaded to YouTube.
Screenshot: Celsius / YouTube

The Celsius crypt network has stopped all trading, including withdrawals, according to a press release issued overnight. The unusual step comes at a time when the main cryptocurrencies have collapsed over the weekend and there are serious questions about whether Celsius will ever allow users to withdraw their money due to some relatively slippery language in their terms of service.

“Due to extreme market conditions, we are announcing today that Celsius is suspending all withdrawals, swaps and transfers between accounts. Today, we are taking this step to put Celsius in a better position to meet its withdrawal obligations over time, ”the company said in a statement. Medium.

“Acting in the interest of our community is our top priority. In fulfilling this commitment and adhering to our risk management framework, we have activated a clause in our Terms of Use that will allow this process to take place. Celsius has valuable assets and we are working hard to meet our obligations, ”the statement continued.

Celsius, who claims to have 1.7 million users, allows people to trade in major cryptocurrencies such as bitcoin 13.2% last 24 hours) and ethereum (down 17%), all while promising incredibly high returns for the people who stuck to the service (HODLing, in the language of the community).

But what are these “conditions of use” to which Celsius refers? First, these terms of use allow Celsius to stop all trading, as they have already done. They also explicitly say that if Celsius goes bankrupt, you may never get access to any of your money again, which American consumers in traditional banks don’t have to worry about FDIC.

From the conditions of use on Celsius Website:

In the event of Celsius going bankrupt, going into liquidation or otherwise unable to repay its liabilities, any eligible digital assets used in the earning service or as collateral in the loan service may not be enforceable and you may not have any legal remedies or right. in connection with Celsius ‘obligations to you other than your rights as Celsius’ creditors under any applicable laws.

Strangely, Celsius claims that users will still “earn rewards” while everything else is suspended – which probably means that users will earn those ridiculously high interest rates on fake internet money. However, it is not clear what good interest rates could be if Celsius is unable to resume operations and operations.

“We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while taking steps to preserve and protect assets. In addition, customers will continue to receive rewards during this break in line with our commitment to our customers, ”said Celsius.

These “rewards” and ridiculously high interest rates were based on a Celsius promotional video uploaded to Youtube in April entitled “Why Choose Celsius?”

When can Celsius users expect to gain access to their money? Society seemed to expect people to be nervous. And so far they make no promises about the timeline.

“We understand this report to be difficult, but we believe our decision to suspend withdrawals, swaps and account transfers is the most responsible action we can take to protect our community. We work with a unique focus: to protect and preserve assets to meet our obligations to our customers. Our ultimate goal is to stabilize liquidity and restore withdrawals, swaps and transfers between accounts as soon as possible. We have a lot of work to do because we are considering different options, this process will take some time and there may be delays, ”said Celsius.

Are you catching it all? There may be a delay.

from his side Celsius founder and CEO Alex Mashinsky has been tacit in the last few hours since the announcement of the suspension of selections on social networks. But on Saturday night, Mashinsky accused people who questioned Celsius’ liquidity of spreading “FUD“, An acronym in the cryptoworld, which means” fear, uncertainty and doubt. “

Mashinsky did not respond immediately to an e-mail from Gizmoda early Monday morning.

Blaming someone for spreading FUD is one of the biggest insults in the cryptocurrency community, but FUD does not appear to be spreading at this time. It was old-fashioned healthy skepticism about cryptocurrencies – a way of making money that seems to work more like a pyramid scheme than a healthy financial system.

The shutdown, at least temporarily, of Celsius is not the first major implosion of recent weeks. Terra and her cryptocurrency Luna collapsed as her stablecoin spiraled into death in an instant a few short days. What did Luna’s founder, Do Kwon, do after losing millions? He launched a new coin called Moon 2.0.

You almost have to respect that audacity. Almost.

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