Celsius Token Price Free Falls, Will It Be The Next LUNA?

Celsius stopped its service. (photo: doc. Haber365)

JAKARTA – Cryptocurrency lending platform Cecius has reportedly stopped withdrawing funds recently. The decision triggered a drop in the price of the main token Celsius (CEL) which plunged more than 50 percent.

However, it is not yet known when platform users are allowed to withdraw funds. The Celsius party only stated that they made a recovery as part of the end goal.

The lending platform disabled swaps and sending tokens to other wallets due to the cryptocurrency market crash. Prior to the announcement of discontinuing its service, Celsius had withdrawn US$250 million from the decentralized finance protocol Aave. Then Celsius sent the funds to the FTX crypto exchange.

Previously, Celsius CEO Alex Mashinky dismissed information regarding the termination of the withdrawal of investor funds. He said it was “FUD and misinformation.” In his Twitter post he stated that he had many enemies because he won.

Celsius CEO statement contradicts the reality that Celsius users cannot withdraw funds after the Terra LUNA event. Even so, Celsius has assured its users by stating that their funds are safe in Celsius.

"It is over. The Celsius Ponzi scheme has collapsed,” said Nathan Anderson, founder of Hindenburg Research. The head of the notorious short-selling company also recalled how the company initially refused to answer whether the company's former chief financial officer Yarom Shalem had been arrested last November in Israel, as reported by U.Today.

In 2021, US regulators accused Celsius of violating the federal securities laws. The latest news from Celsius has exacerbated the condition of the collapsing crypto market with the price of the top two cryptocurrencies dropping, Bitcoin and Ethereum.

At the time of writing, CEL was trading at a price of IDR 2,803, at 14:59 WIB, Monday 13 June 2022. The CEL price had fallen by 52.2 percent in the last 24 hours.