Is Celsius a good cryptocurrency lender?

More than 1million crypto traders use Celsius, making it one of the most popular cryptocurrency lending sites. In August 2021, the platform announced it amassed more than $20billion in crypto assets after holding just $1billion a year prior. Celsius, and other crypto lenders like it, have run into trouble with regulators in the past.

How does Celsius work?

Users can deposit crypto assets on the Celsius platform to earn generous interest rates, or they can use them as collateral for loans. Users can also buy Celsius’s native CEL token which gives them access to greater promised rates of interest and better borrowing rates.

Is Celsius in a liquidity crisis?

In a May 2022 report, Celsius disclosed it had roughly $12 billion worth of assets under management and had nearly 1.7 million customers. That number has likely plummeted due to the sell-off that has swept through the entire crypto sector in mid-2022. In short, Celsius is facing a liquidity crisis.

Why did Celsius freeze bitcoin?

Celsius posted a memo informing users that it had frozen their assets, sending the price of Bitcoin and other cryptos down along with it. The post read: “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” read the statement.