No shock this house of cards is under pressure again. Teachers, police officers, and firemen are in the fray thanks to bad decisions by so-called experts. Innocent investors shouldn’t have to suffer like this. Celsius, one of the world’s largest crypto-lenders has informed its users that it is pausing all withdrawals, swaps, and transfers due to “extreme market conditions.” Vicky Ge Huang reports for The Wall Street Journal:
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company said in a blog post.
Celsius lends out customer deposits to other users to earn a return. The firm managed $11.8 billion in assets as of May 17, according to its website. It offers users annual percentage yields of up to 18.63% on cryptocurrency deposits. The company said it has 1.7 million users. Celsius raised $750 million in funding late last year from investors including Canadian pension fund Caisse de dépôt et placement du Québec.
Look at what has happened to the price of bitcoin in the last few months.
From over $67,000 per bitcoin in November to less than $25,000 per bitcoin today. That’s the sort of neck-snapping volatility people saving for retirement cannot endure.
The first priority of every investor should be a return of their assets, not a return on their assets. What’s happening is pensions over-promised and underperformed while government officials spent like drunken sailors. Pressure to perform and lack of funding is a recipe for disaster, yet these disasters happen with frightening frequency. No one ever thinks they’re the one who’s going to get hit.
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E.J. Smith - Your Survival Guy
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