The Celsius Network is a crypto firm that lets you lend your crypto "assets" and collect interest (rates vary according to the asset), and also borrow against them to lever up. The amount of margin you can get is fairly conservative. You can only borrow up to 50% of your asset value on deposit. Most traditional brokerages let you borrow up to 100%. The lower leverage rate makes margin calls less likely -- unless you are trading unregulated digital tokens of questionable value. With about a 65% drawdown on crypto since the peak in November, margin calls are probably coming into play now at Celsius. Six days ago,
Celsius was not even worried:
We have made it through crypto downturns before (this is our fourth!). Celsius is prepared. At this already challenging time, it’s unfortunate that vocal actors are spreading misinformation and confusion. They have tried unsuccessfully, for example, to link Celsius to the collapse of Luna and falsely claim that Celsius sustained significant losses as a result.
But as of today, Celsius froze all withdrawls and swaps.
It's like they are worried, or something.
Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.
I wonder how they define "over time". Could be a day, a week, or the year 2525, if man is still alive. I don't think Celsius deposits are FDIC insured, but you'll have to check the fine print.
