Crypto community confused as Celsius continues with weekly rewards
Members of the crypto community on Twitter have been left bewildered by the beleaguered Celsius Network continuing to pay weekly rewards despite pausing withdrawals two weeks ago.
As previously reported, crypto lending platform Celsius paused withdrawals on June 13 after citing extreme market conditions amid the current bear market. Reports soon followed that the firm was undergoing liquidity issues and may be heading towards insolvency, potentially putting users’ funds at risk.
Why is @CelsiusNetwork still paying rewards if apparently they are talking bankruptcy? Why not pause rewards and set a low withdrawal limit? Is it me or does that make too much sense?
Figures such as Bitcoin (BTC) OG and CEO and co-founder of online investment platform BnkToTheFuture, Simon Dixon, tweeted his bewilderment to his 59,300 followers on June 27 over receiving nearly $4,000 worth of crypto rewards but being unable to withdraw them:
Upon searching “Celsius still paying” on Twitter, there are countless users raising questions over the lending platform, with some such as 'CryptoStylesUSA' calling it “insulting” that Celsius continues to pay weekly rewards while keeping their “crypto hostage.”
This is honestly insulting, @CelsiusNetwork is still paying weekly rewards while holding my crypto hostage. pic.twitter.com/Cst0iqNkDc
According to Celsius' website — which is currently undergoing revamp due to the liquidity issues — the company is still advertising annual percentage yields (APYs) of up to 18.63% on crypto deposits, which many have argued is unsustainable.
The SNX native token from decentralized finance (DeFi) platform Synthetix is the only asset this promotio offers at the time of writing. The top tier stablecoins have roughly a 9% APY
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