A popular crypto lending firm, identified as Celsius recently announced the decision to immediately suspend withdrawals, and transfers between accounts on its network. The lending firm confirmed the decision in a post relayed on its blog on Monday. As revealed, Celsius took the decision to pause the functions owing to prevailing “extreme market conditions”.
The renowned lending platform in the blog post also confirmed that the pausing of the highlighted operations will commence on Monday. According to the post, the suspension appears as one of the measures geared toward putting Celsius in a better position to fulfill its withdrawal obligations. More so, Celsius revealed that the decision to halt the processes will help solidify liquidity and operations on the network.
As of press time, the platform failed to reveal the time in which the suspended operations will be restored. However, it hinted that the processes geared towards stabilizing liquidity with the suspension may take time and becomes vulnerable to delays. Celsius emphasizes the need for a lot of work owing to its consideration of various alternatives.
Customers to accrue rewards despite the halting – Celsius
Furthermore, the platform understands the difficult implications of the suspension on its users. It, however, emphasized the need to protect and preserve assets as the ultimate reason for the decision. Celsius thus promised to accelerate the processes of restoring all suspended services. The lending platform pleads for understanding amidst its customers and promises to avail information to them when necessary.
As of press time, the native token of the lending platform records a decline in value. According to reports, CEL dropped by more than 60% from $0.36 to $0.14 within 10pm to 11:30pm ET last Sunday.
Recall that the prices associated with cryptocurrencies recorded an unprecedented decline over the weekend. This, according to social media user reportedly plunged the lending platform into a liquidity turmoil. However, as at the time of filing this report, Celsius is the only lending firm that has suspended withdrawal, transfer, and swap operations on its network.