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Thursday, December 08, 2022

Latest crypto debacle ‘halted’ accounts holding billions in assets

Latest crypto debacle 'halted' accounts holding billions in assets

Latest Crypto Debacle 'Halted' Accounts Holding Billions In Assets

A month after the explosion of the Terra stablecoin rocked the crypto market, another crisis is sparking a renewed crisis in the entire digital-asset universe.

One of the largest lenders in crypto and a major player in the world of decentralized finance (DeFi), Alseus Networks said late on Sunday that it would be halting withdrawals, swaps and transfers after weeks of speculation over its ability to make good on outsized. Had been. It offered rewards on some of its products, including returns up to 17pc.

The move effectively halted a platform with registered entities around the world and billions of dollars in digital coins under management, intensifying a sell-off in a broader market that has already been fueled by concerns over the prospects of a tightening monetary policy. The reason was progress. Reserve meeting this week

“Celsius news added to the fire, adding to the uncertainty in the market,” said Vijay Iyer, Vice President of Corporate Development & International at crypto platform Luno.

“There is a lot of pressure on prices as we go into the week of the Fed’s decision with concerns over protocols offering high-yield products.”

The recession is the latest blow to the cryptocurrency market and DeFi, its largely unregulated answer to traditional finance – which, at its best, promises more control for users with higher returns and lower costs, but with It also brings more risk and less security measures.

In May, the collapse of the TeraUSD (UST) stablecoin and its sister token Luna attracted much of the market’s attention, but one of the project’s main attractions for investors was its promised interest rate, which could be as high as 20pc for UST deposits. was more. Anchor the Terra blockchain-based lending project.

While Celsius is a centralized platform, with the operations and staff that differentiate it from DeFi, its deep involvement in the space – investing in Terra and several riskier strategies designed to earn high yields that it can then pass on to its users If – Cast sharp doubts about its viability.

Both TeraUSD and Celsius revolve around the potential for super-high yields to keep up with demand, relying on a steady influx of new entrants feeding the system itself, or borrowing or borrowing to pay higher rates. Makes other investments.

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