What the Celsius Freeze Could Mean for Crypto; Recapping Coinbase’s Turbulent Month

As crypto prices continue to plunge, all eyes are on big crypto investors and the lenders that helped speculative investors juice their bets. Trouble in recent days at crypto lender Celsius and crypto hedge fund Three Arrows Capital has placed the industry on edge just weeks after the implosion of the algorithmic stablecoin TerraUSD—in turn fueling further token selloffs. 

To recap, Celsius announced on Monday that it was pausing withdrawals and transfers between accounts due to market conditions and cited the need to “stabilize liquidity and operations” as it takes steps “to preserve and protect assets.” Many users were drawn to Celsius for its promise of high interest rates—some of which were marketed as high as 18%—for those who lent certain tokens to the firm, which in turn lends out tokens to borrowers at higher rates. Celsius managed about $11.8 billion in assets as of May 17, according to its website, and serves 1.7 million customers.