Blockchain and Crypto, Member Exclusive

Bankchain Briefing: What can we learn from the Celsius withdrawal freeze?

  • This week, we try to make sense of the Celsius withdrawal freeze and discuss its implications for investors and the wider industry.
  • We also hear from Zero Hash co-founder Edward Woodford on the convergence of DeFi and TradFi.

Email a Friend

Bankchain Briefing: What can we learn from the Celsius withdrawal freeze?

The crypto winter keeps getting harsher. Just a month after the Terra stablecoin de-peg sent shock waves throughout the industry, a new crisis has been causing panic in the world of digital assets and keeping investors up at night.

On Sunday, June 12, blockchain-based lending platform Celsius Network announced that it would freeze all withdrawals and transfers of digital assets on its platform due to “extreme market conditions”.

Celsius is one of the biggest players in the crypto lending space, with over $8 billion lent out to clients and nearly $12 billion in assets under management as of last month.

“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 wrote in a memo to its clients. “We understand that this news is difficult, but we believe that our decision to pause withdrawals and transfers between accounts is the most responsible action we can take to protect our community.”

The news triggered a steep decline in crypto prices, with the global crypto market cap dropping below $1 trillion for the first time since January 2021. The company’s native CEL token took a nosedive, dropping 70% within a day, from a high of $0.49 down to $0.15. Bitcoin hit an 18-month low of under $23000, while Ether dropped nearly 20% to below $1200.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Bankchain Briefing: What can we learn from the Celsius withdrawal freeze?”

Member Exclusive

Why are regulators cracking down on bank-fintech partnerships?

  • A higher level of regulatory scrutiny is on the way for fintechs and the bank partners on which they rely.
  • Increased regulatory scrutiny could result in a safer and more resilient market to the benefit of consumers, says Brian Graham, partner at Klaros Group.
Lindi Miti | September 27, 2022
Innovation, Member Exclusive

Slack and Salesforce launch industry-specific digital solutions – what’s in it for FIs?

  • Slack and Salesforce have built solutions to help their customers make the most of their digital tools.
  • How will these solutions benefit financial firms?
Sara Khairi | September 26, 2022
Data Snacks, Member Exclusive

Data Snack: On messaging and personalization in the financial industry

  • Times have changed and consumers expect more from their FIs. That includes messaging.
  • But when it comes to what messages to send, there’s no one-size-fits-all. That’s where personalization comes in.
Rivka Abramson | September 23, 2022
Member Exclusive, Modern Marketing

Marketing Briefing: The future of NFTs in loyalty programs

  • Starbucks has been getting a lot of attention for its moves surrounding NFTs.
  • Will NFTs find their home in loyalty programs?
Rivka Abramson | September 22, 2022
Data Snacks, Member Exclusive

Data Snack: How was Q2 2022 for fintech investments?

  • Fintech investment in Q2 2022 was the lowest in five straight quarters, at $21.5 billion.
  • Unicorn creation in fintech dropped down near pre-pandemic levels in Q2, with just 25 new unicorns being formed globally.
Subboh Jaffery | September 20, 2022
More Articles