HomeCryptoCrypto community confused as Celsius continues with weekly rewards | NEWSRUX

Crypto community confused as Celsius continues with weekly rewards | NEWSRUX

Members of the crypto group on Twitter have been left bewildered by the beleaguered Celsius Community persevering with to pay weekly rewards regardless of pausing withdrawals two weeks in the past.

As beforehand reported, crypto lending platform Celsius paused withdrawals on June 13 after citing excessive market situations amid the present bear market. Reviews quickly adopted that the agency was present process liquidity points and could also be heading in the direction of insolvency, probably placing customers’ funds in danger.

Figures corresponding to Bitcoin (BTC) OG and CEO and co-founder of on-line funding platform BnkToTheFuture, Simon Dixon, tweeted his bewilderment to his 59,300 followers on June 27 over receiving practically $4,000 value of crypto rewards however being unable to withdraw them:

“E-mail on one in all my accounts. Can’t withdraw however @CelsiusNetwork continues to be paying out. I’m curious should you suppose the rewards ought to nonetheless be coming? Ideas?”

Upon looking “Celsius nonetheless paying” on Twitter, there are numerous customers elevating questions over the lending platform, with some corresponding to ‘CryptoStylesUSA’ calling it “insulting” that Celsius continues to pay weekly rewards whereas preserving their “crypto hostage.”

Based on Celsius’ web site — which is at present present process revamp as a result of liquidity points — the corporate continues to be promoting annual share yields (APYs) of as much as 18.63% on crypto deposits, which many have argued is unsustainable.

The SNX native token from decentralized finance (DeFi) platform Synthetix is the one asset this promotio presents on the time of writing. The highest tier stablecoins have roughly a 9% APY listed, whereas Polkadot (DOT) and Polygon (MATIC) have provided APYs as excessive as 11.87% and 9.52% apiece.

Celsius additionally seems to be nonetheless providing 10% rewards on first deposits as much as $250,000 regardless of not at present permitting customers to withdraw from the platform.

Whereas it’s nonetheless unsure what the precise destiny of funds belonging to Celsius customers will likely be, the agency reportedly onboarded advisers from a administration consulting agency upfront of the corporate presumably going through chapter. Celsius additionally employed attorneys on June 14 to assist restructure the corporate amid its monetary woes.

Associated: ‘Crypto is rather like the tip of the 90s with the web bubble,’ says Hodl CEO Maurice Mureau

On June 27, rumors began circulating that Celsius CEO Alex Mashinksy allegedly tried to depart the nation through Morrison Airport in New Jersey however was stopped by authorities. It seems the story originated from crypto analyst Mike Alfred, nonetheless, the agency has reportedly denied the accusations.