The crypto community is split. Cryptocurrency lender Celsius continues to pay investors weekly despite the suspension of withdrawals amid potential bankruptcy. Many in the community consider it “insulting.”
Celsius stopped withdrawing on June 13, 2022 due to extreme market conditions. According to reports, the company is in financial trouble, may be on the verge of collapse, and may endanger consumer cash.
Investors are confused about what this means. Their rewards are piled up, but there is no way for them to withdraw money. Many people used Twitter to express their disappointment with the company.
Simon Dixon, CEO and co-founder of the online investment platform BnkToTheFuture, received $ 4,000 worth of crypto fees but couldn’t withdraw them.
Many consumers have expressed concern about the loan platform. Many are insulted by the company’s efforts to continue weekly compensation.
Meanwhile, Alex Mashinsky, CEO of Celsius Network, argued that the money was safe. He also said the platform is up and running 24 hours a day to address the issue. However, cryptocurrency expert Mike Alfred on Twitter claimed that Machine Ski was about to leave the country.
Nevertheless, Celsius confirmed that the claim was not true. They said the team is working hard to solve all the problems.
There is also talk about the possibility of Goldman Sachs’ acquisition of Celsius. Goldman Sachs is reportedly working on a $ 2 billion economic warfare fund for purchase.
According to Celsius’ website, the company continues to promote annual interest rates (APY) of up to 18.63% on cryptocurrency deposits currently being redesigned due to liquidity concerns. Many call this unsustainable.
At the time of writing, the campaign only offers Synthetix (SNX), a native token of the decentralized finance (DeFi) platform Synthetix. The average annual yield (APY) of the top stablecoins in Celsius is about 9%, while Polkadot (DOT) and Polygon (MATIC) offer 11.87% and 9.52% APY, respectively.
In addition, the company offers a 10% bonus on initial deposits of up to $ 250,000, even if the site does not yet allow withdrawals.
It is still unclear what exactly will happen to Celsius users’ funds. The company hired a consultant from a management consulting firm before going out of business.