Members of the crypto community on Twitter have been left bewildered by the beleaguered Celsius Network persevering with to pay weekly rewards regardless of pausing withdrawals two weeks in the past.
As beforehand reported, crypto lending platform Celsius paused withdrawals on June 13 after citing excessive market circumstances amid the present bear market. Reports quickly adopted that the agency was present process liquidity points and could also be heading in direction of insolvency, doubtlessly placing customers’ funds in danger.
Why is @CelsiusNetwork nonetheless paying rewards if apparently they’re speaking chapter? Why not pause rewards and set a low withdrawal restrict? Is it me or does that make an excessive amount of sense?
— Crypto V (@crypto_kid2021) June 27, 2022
Figures such as Bitcoin (BTC) OG and CEO and co-founder of on-line funding platform BnkToTheFuture, Simon Dixon, tweeted his bewilderment to his 59,300 followers on June 27 over receiving almost $4,000 value of crypto rewards however being unable to withdraw them:
“Email on one of my accounts. Can’t withdraw but @CelsiusNetwork is still paying out. I’m curious if you think the rewards should still be coming? Thoughts?”
Upon looking “Celsius still paying” on Twitter, there are numerous customers elevating questions over the lending platform, with some such as ‘CryptoStylesUSA’ calling it “insulting” that Celsius continues to pay weekly rewards whereas retaining their “crypto hostage.”
This is actually insulting, @CelsiusNetwork continues to be paying weekly rewards whereas holding my crypto hostage. pic.twitter.com/Cst0iqNkDc
— CryptoSteve.eth (@CryptoStylesUSA) June 27, 2022
According to Celsius’ web site — which is at present present process revamp because of the liquidity points — the corporate continues to be promoting annual proportion yields (APYs) of as much as 18.63% on crypto deposits, which many have argued is unsustainable.
The SNX native token from decentralized finance (DeFi) platform Synthetix is the one asset this promotio presents on the time of writing. The high tier stablecoins have roughly a 9% APY listed, whereas Polkadot (DOT) and Polygon (MATIC) have supplied APYs as excessive as 11.87% and 9.52% apiece.
Celsius additionally seems to be nonetheless providing 10% rewards on first deposits as much as $250,000 regardless of not at present permitting customers to withdraw from the platform.
While it’s nonetheless unsure what the precise destiny of funds belonging to Celsius customers might be, the agency reportedly onboarded advisers from a administration consulting agency prematurely of the corporate presumably dealing with chapter. Celsius additionally employed legal professionals on June 14 to assist restructure the corporate amid its monetary woes.
Related: ‘Crypto is rather like the tip of the 90s with the web bubble,’ says Hodl CEO Maurice Mureau
On June 27, rumors began circulating that Celsius CEO Alex Mashinksy allegedly tried to depart the nation through Morrison Airport in New Jersey however was stopped by authorities. It seems the story originated from crypto analyst Mike Alfred, nevertheless, the agency has reportedly denied the accusations.