- Celsius Network suggests that it will need more time to normalize withdrawals and operations.
- Embattled centralized cryptocurrency lender will require some kind of bailout or backstop, or risk collapse and in the event it does free up withdrawals, could suffer from a fresh run.
Halting withdrawals and roiling markets, cryptocurrency lender Celsius Network has cautioned that it will require time to regain its footing and normalise its operations.
In a blog post Monday, Celsius indicated that since its company’s establishment, ‘open dialogue with regulators and officials’ has taken precedence, much to the chagrin of depositors desperate to access their assets.
Additionally, Celsius plans to work closely with ‘regulators and officials’ to formulate a solution to restart operations and normalize withdrawals.
The crypto lending firm has also halted its Twitter Spaces and AMAs (Ask Me Anything) allegedly to focus on fixing the issues that it is currently facing.
But restarting normal operations may not even be possible for Celsius.
For starters, once the floodgates open, it’s almost a given that depositors and those with assets on Celsius Network, will flood in with redemption requests, the equivalent of a bank run.
In the wake of the TerraUSD and Luna implosion, counterparties are still wary, unsure of which will be the next shoe to fall.
Three Arrows Capital, which is rumored to be insolvent as well has led to a crisis of confidence in a market that has already struggled amidst tightening monetary policy.
