NEW YORK (AP) — Bitcoin and other cryptocurrencies were collapsing in price Monday, after a major crypto lender halted all withdrawals citing “extreme market conditions.”
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It is the second collapse of a part of the cryptocurrency world in the last two months. The stablecoin Terra imploded in early May, erasing tens of billions of dollars in a matter of hours.
Bitcoin was trading at roughly $22,600 as of midday Monday, down more than 17% in the past day. Ethereum, another widely-followed cryptocurrency, was down more than 20%.
On Sunday, the lending platform Celsius announced that it was pausing all withdrawals and transfers between accounts in order to “honor, over time, withdrawal obligations.” Celsius, with roughly 1.7 million customers, gave no indication in its announcement when it would allow users to access their funds.
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” it said.
Celsius is one of the bigger cryptocurrency lending platforms, with more than $11 billion in customer assets. In exchange for customers’ deposits, the company gives out extremely generous yields, upwards of 19% on some accounts. These lending platforms have come under scrutiny recently because they offer yields that normal markets could not support, and critics have called them effectively Ponzi schemes.
Terra, and its token Luna, offered similar yields on customer deposits. Those tokens collapsed after huge customer withdrawals forced Terra’s operators to liquidate all of the assets being used to support their currencies. The collapse of Terra has spurred calls for reform from the cryptocurrency industry, and calls for Congressional regulation.
I think it’s amazing that something that is totally worthless costs $20,000 to buy. You aren’t even getting a bridge for your money. It’s similar to selling a speck of sand for $20,000 without having to hand over the speck of sand. Truly amazing concept.
the whole thing is a fraud
I like to think that there is a government depository somewhere in California, much like Fort Knox. In this depository are shelves of shoeboxes that contain the precious reserves that back up all the bitcoins discovered to date.
Shelves and shelves of empty shoeboxes.
But yet you had a bunch of these Yeshiva graduates, who made a few dollars, pushing these Bitcoin crap at their “professional” seminars. All these so-called business/investment experts. They make their money shaking down the most vulnerable gullible loh yutzlach’s amongst us.
Another perfect example of, A mentch tracht, un Gut lachts. To all the people putting all their faith in Bitcoin.
Warren Buffett said that crypto will end up losing its value.
Amazing how even intelligent people believe this Bitcoin joke. And scary that so many can be made to believe anything . משוגע די גאנצע משפחה
Celsius was a ponzi scheme
This article is complete nonsense. Celsius stopped allowing withdrawals because BTC was crashing, not the other way round.
I blame Joe Biden.