Celsius Freezes Assets - More Crash Incoming?

avatar

If you think the stock market is terrible, cryptocurrencies got hit much harder. Unfortunately, this may just be the beginning. Because if people have a lot of fear that their exchanges will go out of the business, that they will stop allowing people to withdraw money and stop allowing people to pull their cryptocurrencies off of the exchanges, then nobody is going to invest in crypto. Everyone just will sell it because of high panic!

celsius collapse
Source

It's basically like a run on the banks like 2008! In 2008, there was a fear that the bank would go out of business, and you wouldn't be pulling out your money from the bank. I mean, the entire financial system was collapsing.

Read More - What caused Bank Run in 2008?

And people literally made a run on the banks. There were ATMs running out of currencies; there were banks that didn't have enough cash on hand for the withdrawals that were coming in. It was a nightmare!


Source

The fed was trying to step in and say - Look! It's FDIC insured; you are fine! Stop pulling out money!
People were quite right for being panicked because some banks did go out of business, and some banks were bankrupt.

Now, why am I telling this story?

Because this is precisely what we are seeing now in the cryptocurrency market. We are witnessing that exchanges start to stop allowing people to withdraw funds, preventing people from moving their crypto off the exchange. This is simply causing a run on the crypto exchanges.

Celsius Crisis

Celsius, a cryptocurrency exchange, announced that they are pausing all withdrawals, Swaps, and transfers between accounts.

It means if your crypto is in Celsius, they are stuck now. In the blog post, they wrote -

"We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets." - Source

But why is this happening?

Just a few days ago, someone on Twitter tweeted - Only 27% of Celsius' ETH is liquid, the rest is either stETH or staked in ETH2, so inaccessible for at least 1 year. If withdrawals continue at the current pace.
50k ETH/week, Celsius will run out of liquid ETH in around 5 weeks.

Tweet - https://twitter.com/yieldchad/status/1533529209137684485

At the same time, staked ETH, a crypto issued by Lido Finance, which is supposed to let you convert one ETH to one Staked ETH, started to descend around three days ago! Basically, this is what is going on right now!

A big part of Celsius's fund is either staked or lent out. So, they only have some liquid funds for withdrawals. Because of panic, so many people were withdrawing funds, causing services to run off liquid funds to pay back users, called Bank Run!

Celcius didn't mention when they will enable withdrawal again! The only this they said is - We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.

So, two things can happen here -

  1. Celsius will re-enable withdrawal. No idea when. But when that happens, it is possible that users will still withdraw funds from Celsius because they have lost confidence.

  2. Or, Celsius will just take the money and run away! Which would be bad for all of us! Someone noticed that Celsius was moving funds into FTX without mentioning anything!

Now the most crucial question is - Is this going to happen in most of the crypto exchanges? Like Huboi, Kraken or even Binance?

As far as I know, other exchanges are not affected by this event! But as the famous saying goes - Not your keys, not your coins!

Coinbase
Read full story here

Coinbase already warned that users could lose crypto if the company goes bankrupt! If the company goes bankrupt, your crypto suddenly becomes their crypto! So this is the warning that you may not be able to recover from all of the company's business failures.

I am not spreading FUD! Just trying to say that this is the risk you have to take when you keep money in the exchanges!

Unfortunately, if this crash is the start, it could continue over the next few days at an accelerated pace. These are kind of the sell-offs where we can see cryptocurrencies fall fifty percent a week.

At this moment, I am not buying any cryptocurrencies. This is the time when dips are dipping more! Because the current market situation is horrible, this crash may stay for a few weeks.

So, be careful!

Posted Using LeoFinance Beta



0
0
0.000
4 comments
avatar

Watch out for the human traffickers at hivefest. You wont know it until its too late. STAY AWAY! Beware, traffickers can be women or men! They will act nice until they dont. There is human trafficking going on around this type of crypto. I have witnessed it. They literally have attempted my murder and are trying to kill me with V2K and RNM. Five years this has been happening to me, it started here, around people that are still here. Homeland security has done nothing at all, they are not here to protect us. Dont we pay them to stop shit like this? The NSA, CIA, FBI, Police and our Government has done nothing. Just like they did with the Havana Syndrome, nothing. Patriot Act my ass. The American government is completely incompetent. The NSA should be taken over by the military and contained Immediately for investigation. I bet we can get to the sources of V2K and RNM then. https://ecency.com/fyrstikken/@fairandbalanced/i-am-the-only-motherfucker-on-the-internet-pointing-to-a-direct-source-for-voice-to-skull-electronic-terrorism ..... https://ecency.com/gangstalking/@acousticpulses/electronic-terrorism-and-gaslighting--if-you-downvote-this-post-you-are-part-of-the-problem if you run into one of them you may want to immediately shoot them in the face. 187, annihilate, asphyxiate, assassinate, behead, bleed, bludgeon, boil, bomb, bone, burn, bury, butcher, cap, casket, choke, chop, club, crucify, crush, curb, decapitate, decimate, deflesh, demolish, destroy, devein, disembowel, dismember, drown, electrocute, eliminate, end, euthanize, eviscerate, execute, explode, exterminate, extinguish, finish, fry, grind, guillotine, gut, hack, hang, hit, ice, implode, incinerate, kill, liquidate, lynch, massacre, maul, microwave, mutilate, neutralize, obliterate, off, pop, poison, punnish, quarter, ruin, shank, shock, shoot, shred, skin, slay, slaughter, smoke, smother, snipe, snuff, squish, stab, strangle, stone, suffocate, suicide, SWAT, swing, terminate, torture, terrorize, whack, waste, wreck. You better fucking kill me.

0
0
0.000
avatar

This post has been manually curated by @steemflow from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share 100 % of the curation rewards with the delegators.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

Read our latest announcement post to get more information.

image.png

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000