Another “crypto” falls: Celsius Network, bankrupt

07/14/2022 at 4:25 PM


The cryptocurrency platform does not withstand the strong stock market crash

The trading platform cryptocurrencies Celsius Network announced in a press release on Wednesday that filed for bankruptcy in the United States, the latest episode in the delicate moment that these financial products are going through, the prices of which have fallen. Celsius Network, based in New Jersey (USA), has assets and liabilities ranging from a wide range of $1,000 million to $10,000 million, due to the high volatility of cryptocurrencies. The company has only $167 million in cash to meet the costs of the restructuring with which it seeks to stabilize its activity and be able to emerge from bankruptcy.

On June 13, the most popular cryptocurrency, bitcoin, fell 15% after it was learned that Celsius Network had suspended all transactions between customers and vetoed the withdrawal of capital due to “extreme conditions” on the market. market.

For months, the cryptocurrency market, which had reached all-time highs during the pandemic, has been crashing, with the value of these digital currencies plummeting. Bitcoin closed the first half of the year with losses of almost 60% of its value, and the cumulative decline from the highs reached last November, when bitcoin hit $69,000, was 72%.

Analysts say that the collapse of cryptocurrencies is due to the tightening of monetary policies by central banks, with the consequent fear of a market recession. It also responds to the measures adopted by several companies in the sector in the face of fears of a “crypto winter” (a prolonged period of falling prices), which have raised suspicion among users.

In June, Binance – the world’s most widely used platform for buying and selling cryptocurrencies – suspended all bitcoin withdrawals due to a technical issue. Other companies in the industry such as Coinbase and Gemini announced workforce reductions of 10% and 18%, respectively, and warned of the coming winter for cryptocurrencies.

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