Reports are suggesting that all may not be well at the Celsius crypto lending platform. Some customers claim they have been unfairly wiped out, while company CEO Alex Mashinsky asserts that malicious actors are trying to collapse the system.
Celsius is one of the crypto industry’s largest lenders, with $11.8 billion worth of assets. The company operates by loaning out digital assets that users have deposited while offering them high yields in interest in return. Celsius also lets investors take out loans at low rates using crypto as collateral.
This model works fine when markets are buoyant, and demand is high, but when prices tank hard and fast as they have been doing this month, the entire system becomes unstable.
Bitcoin bull Max Keiser compared the high yields on Celsius to those previously offered by DeFi platforms harnessing UST and LUNA.
The high yields on CEL are a mirage. Just like LUNA/UST. https://t.co/22wQIYpRR4
— Max (@maxkeiser) May 19, 2022
Terra First, Celsius Nex
We współpracy z: https://cryptopotato.com/plunging-celsius-cel-yields-ignites-investor-exodus-reports/
