• Wed. Jun 19th, 2024
Celsius Network


Celsius Network

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Nowadays it is a challenging task for newbies to enter the cryptocurrency market due to the fact that drastic alterations have been made in recent months. As the price of the cryptocurrency has fallen significantly, it has induced the total value of the crypto market to devalue as well, therefore investors are highly concerned about the current situation.

As a result, cryptocurrency loan companies faced difficult circumstances and were forced to carry out serious steps in order to slow down the process of withdrawals.

Celsius Network is one of those crypto lender companies that faced significant problems recently. Given the fact that its customers were in an extreme rush to withdraw money, the company has decided to freeze its assets by manipulating the price of the crypto token with the help of customer deposits.

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As a result, Celsius Network was sued by its own former investment manager Jason Stone, which led the company to file for bankruptcy.

The Results of Celsius Network Actions

Jason Stone stated that Celsius Network had used a so-called Ponzi scheme which means deliberately mismanaging customers’ money in order to maximize the benefits of the company. It partnered with the Defi aggregator called KeyFi Inc which has conducted a lot of services worth millions of dollars, but in the end, they ended up deceived since Celsius Network never paid a cent.

Stone has opened a dispute against this company in New York state court wishing to compensate for his losses and punitive damages. At first, Celsius did not have an immediate reaction to the lawsuit, but later they decided to freeze deposits and withdrawals for every user. This is because the market was under extreme conditions and according to officials, there was no other way out.

At some point, the company promised users to furnish them with increased returns of up to 20%, but according to Stone, it failed to protect investments and lost a substantial amount of money as the crypto prices fluctuated. What’s more, not only did Celsius freeze customer funds, but it also depicted deposits made with cryptocurrencies on a U.S dollar basis, which has induced a nearly $150 million inexplicable hole.

In order to avoid fraud and manipulation, you have to seek regulated platforms that carry a license from reputable organizations. Recently, a vast number of novice traders have benefited from Bitcoin Method, which is a newly released trading technology utilizing AI and intelligent algorithms in order to provide successful trading. By doing so, you will have a reliable place to operate and your funds will be protected maximally.

Before these accusations, Jason Stone was working for this company without a written agreement, but he had still managed to bring a profit of $838 million for both Celsius and KeyFi from August 2020 to March 2021. However, when he found out that the hedging problems could

have had a fatal end, he decided to exit the relationship in March 2021. By doing so, he tried to maintain a reputable name for KeyFi, but Celsius Network has never recognized him as a former partner.

Things To Consider During Extreme Market Conditions

As you can tell from the above-mentioned example, the crypto market experiences difficult circumstances when things get out of hand and the value of coins falls. This fact might be daunting, especially for novice investors since they are not aware of what the future holds and fail to carry out proper actions. Down below, we are going to point out some of the most useful suggestions that you need to take into account in order to succeed in this field.

For starters, It is crucial to look for safe and reliable trading platforms. Nowadays, technological advancements have made it possible for people to establish scam websites where they deceive users to steal their money. As we have noted above, the first thing you need to do includes checking the legitimacy of the platform which is usually written on the bottom side of the website!

What’s more, it is essential to constantly remind yourself that every cryptocurrency has a highly volatile nature meaning that its price goes up and down every now and then. As of today, the Bitcoin price is 19.721$ which is one of the lowest numbers in recent years.

When the value of Bitcoin falls, other digital coins do the same as well which ends up decreasing the total crypto market value. Although it is very hard even for experts to correctly foresee the price of cryptos, you need to constantly be aware of their movement, especially when you choose a long-term trading strategy.

One more important suggestion would be to go for day trading. This means purchasing and selling financial instruments within a day in order to reduce the risk of negative price gaps. However, this might not be a perfect choice for newbies given the fact that trading within such a short period of time requires enormous experience and knowledge in the field.

On the flip side, once you get enough experience, day trading will provide excellent opportunities for you to avoid significant losses in case the value of the crypto market falls. Hence, as long as you stick with trustworthy trading technologies and choose the right strategy, you will most likely succeed in this field!

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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.