Investorideas.com

Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS



Share on StockTwits

DeFi platform's issues rock crypto market, underscores need for scrutiny

 

June 13, 2022 (Investorideas.com Newswire) Investors of DeFi (decentralized finance) need to exercise "caution and scrutiny" amid growing concerns about the liquidity of this certain type of cryptocurrency service, warns the CEO of a global financial giant.

The warning from Nigel Green, the chief executive of deVere Group, one of the world's largest independent financial advisory, asset management and fintech organizations, comes as the Celsius Network, a DeFi platform and one of the largest crypto lenders, announced on Sunday night that it was "pausing all withdrawals, Swap, and transfers between accounts" for its 1.7 million clients.

An email to all customers reads: "Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations."

Celsius operates in much the same way as a bank, but rather than in fiat money it does so in cryptocurrency. It collects deposits and then loans them out.

The deVere CEO says: "The wider crypto ecosystem has been rocked again – not by 'real' cryptocurrencies like Bitcoin, but by DeFi.

"There are legitimate and serious concerns about networks' high yields, links to failed dollar-pegged stablecoin Terra, and reserves.

"The unprecedented move by Celsius is effectively blocking clients from accessing their assets which will do little to quell fears from critics that some DeFi platforms could be Ponzi schemes."

He continues: "I would urge people to exercise caution and scrutiny on crypto lending firms which offer clients lucrative double-digit yields on assets like Bitcoin and Ethereum.

"If it sounds too good to be true, it probably is."

In its note to its customers, Celsius said its "ultimate objective is stabilizing liquidity." It did not give a date for when customers might expect to be able to withdraw again, warning that "this process will take time, and there may be delays."

The DeFi lending giant Celsius halting withdrawals has weighed on the broader crypto sector with Bitcoin, the world's largest digital token plunging to the lowest in 18 months in Asia trading on Monday.

"The current issues facing Celsius will, inevitably, be used by crypto cynics to knock digital currencies, says Nigel Green.

"The cryptocurrency critics will jump on this situation, as they always do when there is a chance to attack.

"However, I would argue many of the traditionalists are the same people who would have probably rebuffed the internet back in the 1990s and e-commerce giants such as Amazon as mere hype in the 2000s."

He concludes: "As ever, you need to ask questions about high yield promises of DeFi lenders.

"But this issue will not prevent savvy investors from directly and securely investing into mainstream cryptocurrencies, like Bitcoin.

"They will appreciate the intrinsic value of digital, borderless, global currencies, which have already changed the way the world handles money, does business, makes transactions and manages assets."

t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits






News and Research for Bitcoin, Blockchain, Digital Currency Stocks and ICO's

Get more Bitcoin, Blockchain, Digital Currency stock investor ideas - news, articles, podcasts and stock directories

Buy a crypto guest post on Investorideas.com