Celsius Creator Disappears After Locking Out $12 Billion Customers And Lowering Bitcoin Price

It’s been over a week now Alex Mashinsky – the creator of the molten project Celsius – does not appear on social media, an unusual demise, given that until recently he was an avid Twitter user, interacting with followers and having heated discussions with critics.

But now, it looks like Mashinsky has lost motivation for even a small talk, due to the liquidity crunch affecting the crypto market, which, in part, is the fault of the company’s CEO himself. Celsius. After all, your mortgage lender’s decision cryptocurrencies to halt withdrawals – a block that is entering its second week – has not only affected the platform’s customers, but the entire crypto market – even bitcoin price was hit.

Celsius’ move sent a ripple effect through the market as investors’ fears grew and caused them to withdraw their cryptocurrencies held in other companies in the industry, leading to a liquidity crunch that hit names. as Capital of the Three Arrows, Babel Finance, Traveler, Finbloxamong others.

These latter events, however, Alex Mashinsky observed in silence. His last public appearance was a video A 13-second video posted on Celsius’ YouTube in which he warns customers that the live streams he’s been doing all week to answer questions from the community will be halted.

“While we face some very difficult challenges, we will be suspending AMAs for the time being so that Celsius can focus on this very important work for the community,” reads the short message.

The last time Mashinsky spoke out on social media was on June 15, when he implied his abstention was work-related.

“The Celsius team is working non-stop. We are focused on your concerns and grateful to have heard so much from you. Seeing you all together is a clear sign that our community is the strongest in the world. It is a difficult period; your patience and support means the world to us. tweeted Mashinsky addressing the message to Celsians – how the company’s customers are known.

The union of users affected by Celsius, hailed by the entrepreneur, may not generate the result he expects – groups of customers already organize collective actions to try to force Celsius to release the loot.

The company held about $12 billion in assets as of May 17, according to its to place in season. As of December last year, Celsius had over $24 billion worth of cryptocurrency stored on its platform from people around the world.

Celsius requires patience

Last Sunday (19), as he finished a week of blocked withdrawals, Celsius posted a note on his blog ask for patience for customers. “This process will take time,” said the company, which assured that its objective remains “to stabilize liquidity and operations”.

Celsius said he was maintaining “an open dialogue with regulators and authorities” and aimed to “find a solution” to the current problem he is facing.

Meanwhile, BnkToTheFuture, Celsius’ lead investor, has offered to help the company implement a “financial innovation”, similar to the one it used to bail out the crypto exchange. BitfinexComment.

Other companies facing similar situations are also turning to partner support. The Crypto Lender BlockFi obtained a $250 million revolving line of credit from the brokerage FTX of Sam Bankman Fried.

On Monday, Bankman-Fried said the cryptocurrency exchange had a “responsibilityto bail out struggling businesses during this relentless bear market. This Thursday (23), it was Binance’s turn hold a similar position.

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