Investing.com – The week kicks off with yet another shock to the cryptocurrency market, as the platform announced this morning that it has paused withdrawals, swaps and transfers between accounts.
Celsius Network is a fintech platform that allows users to stake their cryptocurrencies to borrow and earn interest in return. The platform accepts over 35 cryptocurrencies, including BTC, LTC, ETH, and stablecoins like USDT, GUSD, and DAI. If users choose to receive their interest earnings in CEL, the platform’s native token, payouts are 30% higher.
“Due to extreme market conditions, we are announcing today that Celsius is halting all withdrawals, swaps and transfers between accounts. We are taking this action today to put Celsius in a better position to eventually meet its withdrawal obligations,” reads a statement on the Celsius Network blog.
Unsurprisingly, the value of the Celsius cryptocurrency (CEL) fell in the face of the announcement, losing more than half of its value in 1 hour, falling from $0.36 to $0.15.
But beyond the impact on Celsius Network’s native cryptocurrency, this new case also seems to weigh on the entire cryptocurrency market, reaching $25,000 shortly after Celsius Network’s announcements.
Indeed, such cases erode investor confidence in the broader cryptocurrency market, especially as the shock of the collapse of TerraUSD and its sister cryptocurrency LUNA is still very fresh in the minds of crypto traders. .