Centralized Crypto Custodians Celsius freezes Withdrawals & transfering

Custodians Crypto Celsius Network
Celsius Network

One of the popular centralized crypto custodians ‘Celsius Network’ has announced late Sunday night that it is halting all the accounts for withdrawals and transferring purposes for some time. Due to the extreme bearish market conditions, the current prices of Ethereum and Bitcoin, and other major altcoins have come down from their support level. And therefore, to support the financial resources for a little more time, Celsius has decided to pause the services for its customers for a little while.

Crypto Market Sentiment by Blockcrunch.co

The steps have been taken in the best interest of the crypto community and to give the existing customers a top priority. On higher priority, the customers will not be able to withdraw their assets, transfer from one Celsius account to another, or swap the crypto assets from another. However, Celsius Network will continue its operations and will provide the community with further information.

Source: Twitter

Also read: Beginners’ guide to Decentralized Finance (DeFi) and its applications

According to the hovering speculations, centralized crypto custodians ‘Celsius’ is doing because of their Staked Ethereum (stETH). They are trying to balance their assets compared to the liability which is their illiquid Ethereum.

stETH is a token released by DeFi lending organization Lido. It is used as proof that the user has staked ETH. Currently, it is running almost 10% lower than the ETH price. As the staked Ethereum (stETH) is crashing drastically, the Ethereum prices (ETH) are sinking too. Although, stETH should not be affecting ETH it has given a rise to panic selling for the second-largest cryptocurrency in the market.

As a consequence, Celsius is forced to pause withdrawals and transfers. This might be a hysterical move because of all FUD but one cannot ignore the crashing market. Today is not a good day for Celsius Networks.

The CEL token, the native token released by the Celsius Network has fallen to $0.1853 at the press time. In the past 24 hours, it has sunk to 56% of its value.

Also read: Mega Crypto M&A jump of 5,000% in 2021 represents more capital raise in 2022

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