The Crypto Community Confused About Celsius Rewards
Some Twitter users have dubbed Celsius’s continued payment of weekly prizes “insulting” despite the suspension of withdrawals. Members of the crypto community on Twitter have been perplexed by the troubled Celsius Network’s continued payment of weekly prizes after a two-week break of leaves.
As previously reported, the cryptocurrency lending platform Celsius halted withdrawals on June 13 due to harsh market conditions in the current bear market. Reports quickly surfaced that the firm was experiencing liquidity troubles and may be on the verge of insolvency. This can potentially put consumers’ funds at risk.
Figures like Simon Dixon, Bitcoin (BTC) pioneer and CEO and co-founder of online investing platform BnkToTheFuture, expressed surprise to his 59,300 followers on Monday after getting over $4,000 in cryptocurrency awards. According to Celsius’ website, which is presently being updated owing to liquidity concerns, the company is still promoting annual percentage yields (APYs) of up to 18.63 percent on cryptocurrency deposits, which many have suggested is unsustainable.
At the time of writing, the only asset available through this campaign is Synthetix (SNX). SNX is the native token of the decentralized finance (DeFi) platform Synthetix. The top tier stablecoins on Celsius have an APY of around 9%. Meanwhile, Polkadot (DOT) and Polygon (MATIC) have APYs as high as 11.87 percent 9.52 percent, respectively.
Celsius is still paying 10% rewards on first deposits up to $250,000, even though customers cannot yet withdraw from the platform.
The specific fate of monies belonging to Celsius users is unknown. However, the corporation hired counsel from a management consulting firm before the company could potentially bankrupt. Celsius also recruited lawyers on June 14 to assist with the company’s financial restructuring.
The remarks fueled speculation regarding Grayscale’s application to transform its Bitcoin Trust into a spot-based ETF scheduled to be approved or denied by the SEC on July 6. Michael Saylor, a Bitcoin bull, tweeted the video with his 2.5 million Twitter followers. He said that Bitcoin is vital as a treasury reserve asset, allowing governments and institutions to support it as a digital asset to expand the economy.
