Don’t Give Up Yet! Discover the Brighter Future of Crypto Market and Keep Winning

Crypto lending platform Celsius has frozen withdrawals and paused swaps and transfers due to extreme market conditions. The company gave no details on when these services will resume. Meanwhile, USDD and USDN, Tron’s Bitcoin-backed stablecoin and Neutrino’s algorithmic stablecoin, respectively, both wobbled 1% off their dollar peg. Investors are pulling funds from liquidity contracts, causing Tron and Neutrino to take steps in defending their peg. The Fed’s Consumer Price Index overshot expectations, indicating a rise in inflation, which caused investors to pull out of stock and crypto investments, causing a sell-off. Crypto lending platforms and algorithmic stablecoins backed by crypto are first to show symptoms of market mayhem.

Celsius Freezes Withdrawals and Transfers

Celsius, a popular crypto lending platform, froze withdrawals and paused swaps and transfers, giving no details on when these services will resume following extreme market volatility as the price of Bitcoin tumbled 15%. Celsius released a statement saying that they are taking this action “to put Celsius in a better position to honor, over time, its withdrawal obligations.”

Stablecoin Destabilization

USDD and USDN, Tron’s Bitcoin-backed stablecoin and Neutrino’s algorithmic stablecoin, respectively, both wobbled 1% off their dollar peg in the overnight hours, causing concerns about stablecoin depegging. Tron’s Justin Sun will inject $2 billion, which he said in a tweet will stabilize USDD and create a short squeeze for all the Tron shorts on Binance, and Neutrino is set to inject a portion of its collateral to stabilize USDN.

Market Meltdown after CPI Increase

Bitcoin gave us a breather from downtrending market conditions earlier in the week, but the US Bureau of Labor Statistics came out with the highest Consumer Price Index since 1981, causing markets to melt down again. This led to a 17% drop in Bitcoin, and the S&P 500 fell 3.1%, putting the broad index at risk of falling into bear market territory.

Lending Platforms and Stablecoins Falling First

Crypto lending platforms and crypto-backed stablecoins are the first to show symptoms of market mayhem, similarly to how a frog’s permeable skin makes it the first indicator of habitat health. Lending platforms and algorithmic stablecoins backed by crypto are so influenced by the health of the market, and when the going gets tough, it makes sense they would be the first to fall.

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