Youtuber TheMoon Loses $200 Million After Celsius Halts Withdraw

A crypto Twitter influencer, TheMoonCarl, tweeted that he lost $200 million in investment to the Celsius Network, one of the largest cryptocurrency lenders. This may be linked to the 80% decrease in the price of CEL, the native token of Celsius Network, in the last 24 hours.

The acute fall in the price of CEL was an aftermath of Celsius Network’s plans to halt all withdrawals, swaps, and transfers between accounts as communicated on June 12, 2022. As per TheVerge, Celsius Network has a customer base of over 1.65 million users.

Celsius claims the decision to freeze withdrawal was necessary for the benefit of their entire community to stabilize liquidity and operations while they take steps to preserve and protect assets. They also noted in the press release that customers will continue to accrue rewards during the pause period. They said:

Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.

A community of users on CoinMarketCap predicts that the price of CEL will remain bearish. Many of them voice out their grievances on the decision of Celsius to half withdrawals. Some users went on to call the Celsius Network a scam, Ponzi scheme, and other ugly names.

At the time of writing, CEL trades at $0.2173. Likewise, its market capitalization, which is currently $48,726,108, also dipped over 48% in the last 24 hours. It attained an all-time high of $8 a year ago and has dropped by 97.51% since then.