- Celsius said the move is necessary in order to stabilize liquidity and operations
- The network warned there may be several delays in the days ahead
Crypto lending platform Celsius announced on Sunday night, June 12th, that it would be pausing withdrawals, swaps and transfers between accounts on its platform due to “extreme market conditions.”
“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” the firm said in a blog.
Celsius said its decision to pause withdrawals was made to “stabilize liquidity and operations.”
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” the network added.
The announcement follows a decline in cryptocurrency prices over the weekend and claims on social media that the network is facing a liquidity crisis. It remains to be seen whether other lending platforms will have a similar impact.
Celsius’ native CEL token has plunged in value as fears over the company’s solvency have grown. The token dropped more than 60% from $0.36 to $0.14 between 10pm and 11:30pm ET on Sunday June 12, according to data from Blockworks Research. It’s now down over 98% from its all-time high of $7.52 just over a year ago.
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Shalini NagarajanBlockworks
Reporter