Beleaguered crypto lending platform Celsius (CRYPTO: CEL), which had paused all withdrawals, swaps, and transfers between accounts last week Monday said while its objective continues to be stabilizing its liquidity and operations, the process will take time.
“It has been one week since we paused withdrawals, Swap, and transfers. We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time,” the platform stated.
Dialogue open with regulators
It further said that it was maintaining an open dialogue with regulators and officials and will continue working with regulators and officials regarding this pause.
“We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community,” Celsius stated.
Last week, the company had canceled a scheduled Reddit AMA session and its CEO Alex Mashinsky appeared with a similar message on the company’s YouTube channel.
Citing “extreme market conditions,” the New Jersey-based company had on June 13 paused all withdrawals, Swaps, and transfers between accounts, to put Celsius in a better position to honor, over time, its withdrawal obligations.
While the company’s abrupt announcement caused mayhem across the crypto market, its native token Celsius tanked by over 50% to $0.20 per token.
Celsius token trading up 44%
The token is currently trading up 44% at $0.84, according to data from Coinmarketcap.
Recovery plan for Celsius
Meanwhile, offering a recovery plan for the company, Simon Dixon co-founder of BnkToTheFuture, a lead investor in Celsius, said traditional finance will not have a timely solution for Celsius and that it can only be solved with a solution using financial innovation.
“I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation,” he said.
