Investors who want to borrow money to buy cryptocurrency can do so through Celsius. They don’t need to sell their bitcoins trading platform before the event. The CEL, or native token, is the most important part of the system. It can be used to buy things, get loans, and give prizes.
Celsius also has a programme for people who keep coming back. How far along in the curriculum a user is can be seen by how many CELs are in their portfolio. When a member moves up to a higher membership level, they get more benefits, such as lower interest rates on loans and more rewards.
At a time when the cryptocurrency market is going through one of its worst bear markets, the top cryptocurrency lending platform, Celsius Network, has let go of at least 150 employees, which is about a quarter of its total staff.
The American and Israeli company said that they are “focused and working as soon as possible to stabilise liquidity and operations so that we can share more information with the community.”
PlayUnmute\sFullscreen
At the end of the year before, $750 million was put into Celsius, which made the company worth $3 billion. In these tough times, Celsius said, “We care about the whole community and all of our clients as we work.”
The crisis on the cryptocurrency market is getting worse, and Celsius is not the only company that has fired people. A month ago, the Bitcoin boom exchange Vauld decided to lay off 30% of its staff.Â
Bybit, a Singapore-based exchange for virtual currencies, fired 2,000 people. Jobs have also been cut at Coinbase, Gemini, Crypto.com, and a lot of other cryptocurrency exchanges and businesses around the world.
Because of “extreme market conditions,” Celsius stopped all withdrawals, swaps, and account transfers the month before. The value of the Celsius Network is $11.8 billion, and 1.7 million people use it.
Since the end of 2021, when they were at their all-time high, Bitcoin, Ethereum, and other crypto tokens have lost more than 70% of their value.
Voyager Digital put a lot of money into the best cryptocurrency hedge fund, Three Arrows Capital (3AC), which recently filed for bankruptcy in the US. Because of this, Voyager Digital (VYGVF) had to stop trading, taking out deposits, and giving loyalty rewards.
Because a bitcoin lender is not regulated like a bank, there is no protection for deposits and no law that says who gets their money back first if the lender goes out of business. When currencies go up and down, bad things happen that hurt how much money Celsius makes.
Even though there wasn’t enough labour on the American market and there were other problems with the supply chain, the company spent more on production and distribution so it could keep growing.
“We had to give up some efficiency on the margin side to make sure we could fill most of our orders,” CEO John Fieldly said on the third quarter results call. We’ve taken steps to improve our future margins because of this, and we think that these costs are either one-time or temporary.
Investors didn’t like this answer, so the price of Celsius shares fell by more than 10% just on Friday. This drop in earnings made a trend that has been getting worse over the past week even worse. Before this happened, the stock had already gone down 10.4% in the previous four days.
As a whole, the market is not very interested in businesses with risky growth right now. This is because the economy as a whole has problems that can’t be fixed by one company alone. This week, Celsius fell because of these worries. A bad earnings report brought them to light.
