Crypto community confused as Celsius continues with weekly rewards
Members of the crypto group on Twitter have been left bewildered by the beleaguered Celsius Community persevering with to pay weekly rewards regardless of pausing withdrawals two weeks in the past.
As beforehand reported, crypto lending platform Celsius paused withdrawals on June 13 after citing excessive market circumstances amid the present bear market. Experiences quickly adopted that the agency was present process liquidity points and could also be heading towards insolvency, probably placing customers’ funds in danger.
Why is @CelsiusNetwork nonetheless paying rewards if apparently they’re speaking chapter? Why not pause rewards and set a low withdrawal restrict? Is it me or does that make an excessive amount of sense?
— Crypto V (@crypto_kid2021) June 27, 2022
Figures resembling Simon Dixon, Bitcoin (BTC) OG and CEO and co-founder of on-line funding platform BnkToTheFuture, tweeted his bewilderment to his 59,300 followers on Monday over receiving almost $4,000 price of crypto rewards however being unable to withdraw them:
“E-mail on one among my accounts. Can’t withdraw however @CelsiusNetwork continues to be paying out. I’m curious in case you suppose the rewards ought to nonetheless be coming? Ideas?”
Upon looking “Celsius nonetheless paying” on Twitter, there are numerous customers elevating questions over the lending platform, with some resembling CryptoStylesUSA calling it “insulting” that Celsius continues to pay weekly rewards whereas holding their “crypto hostage.”
That is actually insulting, @CelsiusNetwork continues to be paying weekly rewards whereas holding my crypto hostage. pic.twitter.com/Cst0iqNkDc
— CryptoSteve.eth (@CryptoStylesUSA) June 27, 2022
In keeping with Celsius’ web site — which is presently present process revamp as a result of liquidity points — the corporate continues to be promoting annual share yields (APYs) of as much as 18.63% on crypto deposits, which many have argued is unsustainable.
Synthetix (SNX), the native token from the decentralized finance (DeFi) platform Synthetix, is the one asset this promotion affords on the time of writing. The highest tier stablecoins on Celsius have roughly a 9% APY listed, whereas Polkadot (DOT) and Polygon (MATIC) have supplied APYs as excessive as 11.87% and 9.52% apiece.
Celsius additionally seems to be nonetheless providing 10% rewards on first deposits as much as $250,000, regardless of presently not permitting customers to withdraw from the platform.
Whereas it’s nonetheless unsure what the precise destiny of funds belonging to Celsius customers might be, the agency reportedly onboarded advisers from a administration consulting agency prematurely of the corporate probably dealing with chapter. Celsius additionally employed attorneys on June 14 to assist restructure the corporate amid its monetary woes.
Associated: ‘Crypto is rather like the top of the 90s with the web bubble,’ says Hodl CEO Maurice Mureau
On Monday, rumors began circulating that Celsius CEO Alex Mashinksy allegedly tried to go away the nation through Morrison Airport in New Jersey however was stopped by authorities. It seems the story originated from crypto analyst Mike Alfred; nevertheless, the agency has reportedly denied the accusations.
