$5B Withdrawn From Crypto Lending Platform Celsius in Under 2 Weeks
Declining Celsius Yields have ignited investor concerns
CEO Alex Mashinsky asserts that malicious actors are trying to collapse the system.
Celsius is one of the crypto industry’s largest lenders, with $11.8 billion worth of assets.
The company operates by loaning out digital assets that users have deposited while offering them high yields in return.
A centralized crypto lending platform, Celsius, is facing pressure from investors as the market crashes.
According to reports, all is not well at the Celsius crypto loan site. Some customers allege they were wrongfully deleted, while CEO Alex Mashinsky claims nefarious actors are attempting to bring the system down.
With $11.8 billion in assets, Celsius is one of the top lenders in the crypto business. The company makes money by lending out digital assets that consumers have invested in exchange for high interest rates. Celsius also allows investors to take out low-interest loans with cryptocurrency as collateral.
Max Keiser compared UST tokens to the high yields offered by DeFi platforms. High yields on CEL are not sustainable. Just like LUNA or UST.
Jacob Silverman has commented that Assets Under Management at Celsius is now down by $5 billion:
Things sound bad at crypto bank/lender Celsius. AUM down $5 billion in less than two weeks. Customers revolting. The CEO is cashing out and yelling at people in AMAs. Insane yields were always unsustainable. https://t.co/a6XzPgIvNI pic.twitter.com/EMuPjK7DNK— Jacob Silverman (@SilvermanJacob) May 18, 2022
Some customers confirmed that they had sold their CEL tokens. Investors also complained that trading was illiquid as the token price fell, which exacerbated their losses.
Mashinsky claimed that some malicious outsiders have decided to attack the firm:
This is not a coincidence. This is somebody who decided, ‘You know what? I’m going to take down all of Celsius.
The native token of the platform has lost another 2.4% on the day to trade at $0.815. It has also plunged more than 20% over the past week and a whopping 63% over the past fortnight.
CEL is now trading at an all-time painfuly high of $8 as it dived on a huge 90% decline since.