Black weekend for the cryptocurrency market. Bitcoin it slipped to $ 25,100, the lowest in 18 months, falling 8%. Ethereum, the second largest cryptocurrency by capitalization, lost 8.5% to $ 1,300. But it is the entire crypto sector that is sinking with a 7% market cap contraction to $ 1,050 billion.
The new collapse took a toll on Celsius Network, a British platform that allows you to borrow funds and earn interest on cryptocurrency deposits. Given the new wave of sales in the sector, the company suspended withdrawals and transfers due to “extreme market conditions”. This is the latest sign of tension on the cryptocurrency market after last month’s Earth-Moon case. The new slowdown has brought the capitalization of the sector close to psychological threshold of the trillion. As of November 2021, the crypto market cap was around $ 3 trillion.
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Celsius: 11.8 billion managed, 750 million raised by pension funds
“We had to make this decision in order to stabilize liquidity and operations as we take steps to preserve and protect assets,” the company said. Celsius lends customer deposits to other users for a return. According to its website, as of May 17 the company was running business for 11.8 billion dollars. It offers users annual percentage returns up to 18.63% on cryptocurrency deposits. The company said it has 1.7 million registered users at the time.
Celsius has collected $ 750 million in funding late last year by investors including the Canadian pension fund Caisse de depot et placement du Québec. In April, the company came under regulatory pressure and stopped offering interest-bearing accounts to non-accredited investors in the United States. Some market watchers said Celsius played a role in the collapse of cryptocurrencies Luna and TerraUsd last month, although the company has consistently denied involvement in last May’s stablecoin debacle. The price of the Celsius token has plummeted 33% to $ 0.25 in the past 24 hours, according to CoinGecko, one of the most followed observers on the world of cryptocurrencies.
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