Weeks after Terra’s collapse, the crypto market has yet to recover from the shock. Now, another ecosystem seems to be struggling. Investors are worried that the Celsius network may be heading the Terra route. Celsius Network, which created the CEL token, has stopped all transfers, withdrawals and trading on its network. Here are the details…
Those behind Celsius transferred ETH and BTC to FTX
In a post on its blog, the company said that account operations were halted, citing unfavorable market conditions. According to the project, all withdrawals, swaps and transfers have been suspended. He also sent emails to customers. He said the action was aimed at protecting his clients’ funds as he found a way to fix the problem. However, investors will continue to reap rewards from their investments. While Celsius has stopped investors from withdrawing or trading their holdings, reports have surfaced that the company is transferring large numbers of ETH to exchanges like FTX. Wu Blockchain used the following statements.
Celsius transferred approximately 104,000 ETH to FTX in the last three days, approximately 50,000 ETH today, 12,000 ETH yesterday, and 42,000 ETH the day before yesterday. Also, Celsius transferred about 9,500 WBTC to FTX today.
The value of the above transfers is around 320 million dollars. As we have reported as Kriptokoin.com, the company has been making transfers for the last few days. Did they predict the collapse? In the case of Terra (LUNA), the company involved, TFL, is said to have transferred funds to secret accounts months before Terra collapsed. That’s why Celsius transferring thousands of ETH to FTX is not welcomed by many people.
Celsius says they are protecting users
Celsius claims it is doing everything it can to protect investors and find a way out of the impasse. Time will tell what’s going on. Celsius uses the following statements:
As we take steps to protect assets, we are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations. Also, in line with our commitment to our customers, customers will continue to accrue rewards during the pause.
CEL price depreciates
Meanwhile, CEL price crashes hard. The token has lost more than 53 percent of its value in the past 24 hours. It now seems to have dropped from $0.49 to $0.19 the previous day. Its market cap also fell close to 48 percent, hitting its lowest levels of $137.8 million. The current price is a long way off from the CEL’s ATH of $8.02 on June 3, 2021, just a year ago. It now registers a 97.5 percent disadvantage.
Celsius was one of the highest-yielding tokens in the market, offering up to 30 percent return on investment (ROI). Experts attributed such extremely high returns to the collapse of Terra, which was bidding up to 20 percent. A few days ago, however, Celsius downplayed the effects of the high yield, saying it had redesigned its operating procedures to avoid the pitfalls Terra experienced.
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