Celsius “Insults” Users By Continuing To Pay Rewards While Suspending Withdrawals

Some Twitter users have called it “insulting” that Celsius continues to pay weekly rewards despite suspending withdrawals.

The action is considered as a joke of Celsius

As previously reported, crypto lending platform Celsius halted withdrawals on June 13 after citing extreme market conditions amid the current bear market. Reports soon followed that the company was experiencing liquidity problems and may be on the verge of default, potentially putting users’ funds at risk.

Figures such as Bitcoin (BTC) OG and the CEO and co-founder of online investment platform BnkToTheFuture, Simon Dixon, tweeted their embarrassment to their 59,300 followers on June 27 about receiving almost $4,000 worth of crypto rewards but can’t withdraw them.

When searching for “Celsius Still Pays” on Twitter, countless users raise questions about the lending platform, with some such as ‘CryptoStylesUSA’ calling it an “insult” that Celsius continues to pay weekly rewards while keeping their “crypto hostage”.

According to Celsius’ website – which is currently being revised due to liquidity issues – the company is still advertising a percentage annual yield (APY) of up to 18.63% on crypto deposits, which many deemed unsustainable.

The SNX native token from decentralized finance (DeFi) platform Synthetix is ​​the only asset this ad offers at the time of writing. The top tier stablecoins have listed APYs around 9%, while Polkadot (DOT) and Polygon (MATIC) have posted APYs as high as 11.87% and 9.52% respectively.

Celsius still seems to offer a 10% bonus on first deposits up to $250,000 even though it currently doesn’t allow users to withdraw funds from the platform.

While it is still uncertain what the exact fate of funds belonging to Celsius users will be, the company said it has had the support of advisors from a prior management consulting firm on whether it can face bankruptcy. On June 14, Celsius also hired a lawyer to help restructure the company amid financial difficulties.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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