Hi,
today we had a new bloody Monday, cause by Celsius, a company that was trying to prove serious till now, froze all the funds of the users. Celsius, the crypto lending company, announced that all transfer are on halt.
This will hit both lenders and borrowers, as both don't have access to their funds any longer. Even if packed nicely, for the own good, it is a bad move. People that can pay back their debt, will probably default. Some that have the need to access their funds, will have issues also.
Even if there is no need for the funds, it is a good thing to be able to withdraw them.
The worse thing is for the ones that want to pay, but won't be able to, as they can't process the transaction. They will lose the collateral because of this. I hope that they can sue the company and at least recover the deposit.
The business model is more like a ponzi, as without fees, it has only the chance to survive if crypto goes up. Well, the party is over, and we are in a bear market, for longer than we think. Crypto value is correlated on the easy money availability and as the time has changed, we have a change in the direction.
Celsius will probably default in the next weeks, as they will be out of funds to pay back. This will cause another wave on the crypto market.
On the other thing, it is good that the market cleans itself, even if the process is painful.
Always remember: Not your keys, not your crypto!
Posted Using LeoFinance Beta
Maybe it is early to say, but there is a chance that Celsius has been built in this way intentionally, and it is a scam from the start.
Of course the users (costumers, investors) probably will sue the company in this case.
I have not heard about Celsius so far, so I do not have any personal experience with it. Maybe the owners have good reputation and good liability. I do not know. I am just loudly thinking about it.
Your content has been voted as a part of Encouragement program. Keep up the good work!
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for new Proposal
Delegate HP and earn more
We brought the bear upon ourselves. Sad to see. But we will get over it.
Posted Using LeoFinance Beta
bitconeeeeeect :)
those who engage in shitcoins, "defi" and other abominations in teh "crypto" space, get what they deserve: rekt. That's the lesson. It could have been learned for a number of times in the last years. It's sad that this fuckups also damage Bitcoin indirectly because so many people put Bitcoin and "Crypto" in the same pocket. Either it's Bitcoin or it's a scam. Simple.
Buy, hold and use Bitcoin (BTC) and you are good.