Shorters feel the burnJust when it thought it was out, they pulled it right back in – Celsius continues its short squeeze pump despite the crypto lender looking like it was tapping out last week.
- CEL is up over 50% this week due to what’s looking like a short squeeze. The pump follows on from an equally impressive 93% gain last week. From its June 14 low of $0.09, the token has jumped over 1000%. Hot dang.
- However, Celsius still hasn’t unpaused withdrawals for users after it announced last Monday that due to “extreme market conditions” assets were to be locked up on its platform until it could figure something out – something it has since admitted “will take time”.
- #CELShortSqueeze has been trending on Twitter as retail investors GameStop-style crank up the heat on shorters who saw the rumors of Celsius’ potential insolvency last week as an opportunity to short at v low prices. Who knows how this one is going to end, but it’s getting hot out there.
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A boiling point for cryptoCrypto lending platform Celsius halts withdrawals, sending fear back into the market only a month after Terra’s crash.
- Celsius announced it is pausing withdrawals on Monday morning amid “extreme market conditions”. No timeline was given either – the crypto lender claimed it’s considering “various options”, and that the process could be lengthy. Already, its competitor Nexo has publicly declared it’s ready to buy any “remaining qualifying assets”. Ouch.
- Is the high-yield, high-reward craze boiling over? Similar to Terra’s Anchor Protocol, which offered almost 20% APY on UST deposited, Celsius offers as much as 30% extra returns on assets weekly. With worse-than-expected US inflation added to the mix, and people feeling v risk averse since Terra’s collapse, it’s not looking good.
- CEL tanked more than 70% in reaction to the news, before (kinda) recovering to a 45% loss as of Monday morning trading. While the entire crypto market looks bearish rn, Celsius has had a particularly rough time, made worse by exposure to UST during Terra’s collapse in May. The token is now down a whopping 98% since its all-time high of $8 last year.
Derek Story / Unsplash
It’s getting hot in hereSoz US-based fans, but there’ll be no more Celsius rewards on the way for you, thanks to the platform's run-in with the law.
- Celsius has banned US users from adding assets and earning rewards on Celsius' Earn platform unless they are ‘accredited’. Want to earn those juicy earnings? Well, to be accredited, you need to earn $200k per year or have a net worth of $1m. So, yeah. Not your Average Joe.
- It’s all down to an entanglement with the law. Regulators in various US states reckon its lending and Earn products might be in violation of securities laws, and now Celsius needs to provide better transparency – tbf, it feels like every crypto is being accused of breaking securities laws rn.
- Its native token slumped 9% on Wednesday and has sunk 33% in April, but it’s not all doom and gloom. Those that don’t pass the ‘accredited’ test will have their coins held in custody accounts where users will still be able to swap, borrow and transfer within those accounts based on their local jurisdiction.
Patrick Hendry / Unsplash