Terra in May, Celsius in June? Why the heat is on after withdrawals halt, $200M to FTX

ambcrypto.com:

There’s no easy way to say this, but current crypto-market conditions can only be described as ‘extreme.’ In fact, ongoing corrections saw the price of Ether and other cryptocurrencies tumble, with many seeing significant liquidations within the market.

Implications of a further fall could see nearly $500 million of on-chain collateral facing liquidation. The stETH/ETH pool asset ratio has already been party to an unbalanced condition… Now, what is next?

— Celsius (@CelsiusNetwork) June 13, 2022

Popular crypto-lending and staking platform Celsius is indeed facing the heat of the harsh conditions. According to its latest announcement, the platform has paused all withdrawals, swaps, and transfers between accounts on its platform due to “extreme market conditions.”

“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”

That being said, customers WILL “continue to accrue rewards during the pause.”

Even so, there are legitimate concerns to be had. For instance, the firm reportedly had about $12 billion in customer assets as of May across 1.7 million users. If things go south, anything could happen.

Even though the platform has halted withdrawals to stabilize liquidity and operations, claims on social media suggest the network might be