However, unlike a bank, Celsius’s loans charge a lower interest rate than it pays on deposits. That can be useful if, for instance, a bitcoin millionaire needs some hard cash to buy a house but does not want to liquidate their bitcoin holdings because they are gambling the coin will go up again. Because of the impossibility of sending debt collectors after a crypto wallet, however, Celsius loans are “overcollateralised”: customers need to deposit bitcoin or ethereum worth at least twice the value of the money they are borrowing. Like a bank, Celsius also has a retail loan operation, with customers able to borrow money, denominated in US dollars, from the service. In November, it said it had raised $750m from investors including Caisse de dépôt et placement du Québec, one of Canada’s largest pension funds. It has $11.8bn in assets, down from more than $24bn in December last year. Celsius has offices in London, New York and Lithuania.Ĭelsius’s website tells customers they can “borrow like a billionaire”. Headlined “Damn the torpedoes, full speed ahead”, the blog said the company had not had “any issues meeting withdrawal requests”. On 7 June, Celsius had published a blog seeking to reassure customers amid volatile conditions in the cryptocurrency markets, triggered initially by a collapse in the crypto project Terra. It then announced at 4.30pm BST that withdrawals had resumed. As a consequence there had been a backlog of bitcoin network withdrawals, Binance said.
“We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations.”īinance said in a statement that bitcoin withdrawals had been suspended shortly after midday in the UK “due to an earlier batch of transactions getting stuck from low transaction fees submitted”. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swap, and transfers between accounts,” the platform said. The company offers customers high interest rates – as much as 18% – on their cryptocurrency deposits and pays the interest in crypto assets, which includes its own token, called CEL. Celsius said in a blogpost it was “pausing” all withdrawals and transfers between accounts for its 1.7 million customers.
0 kommentar(er)
