100º Celsius: Industry Debating Possible Impact, Lenders Reassuring Users, Nexo Offers Help
Major crypto lender Celsius (CEL) has entered boiling hot water today when it announced a halt to withdrawals, transfers between accounts, and Swap – leaving the crypto industry to try and figure out how this crisis may affect it, as lenders left and right reassure their users of normal operations.
As reported, Celsius said that they have halted these services due to “extreme market conditions,” and in order “to put Celsius in a better position to honor, over time, its withdrawal obligations.”
They further stated that is a clause in their Terms of Use agreement, and that it is necessary in order to “stabilize liquidity and operations while we take steps to preserve and protect assets.” The team will have to consider “various options” and this will take time, they added.
The company did not provide much information on what exactly happened to lead them to make this decision, or what the state of the company is.
Primarily, many industry insiders and commenters online are wondering if this means that the lender is insolvent – and if so, what kind of insolvent, as this makes a massive difference. Being insolvent basically means that a business/person can’t pay their bills.
CakeDiFi CEO Julian Hosp is one of these people asking if Celsius is insolvent “or do they just need time to meet obligations?”
Also, what are the companies that have been lending to Celsius?
There doesn’t appear to be a clear answer as to which companies are involved and how, but among the named entities are the USDT issuer Tether, crypto exchange Gemini, Nuri, and Voyager.
Voyager’s CEO, Stephen Ehrlich, however, has tweeted that: “No exposure to Celsius at [Voyager] as of today. Old info.” And when asked “when Celsius implodes what is Voyager's exposure to them
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