Celsius Continues With Weekly Rewards Leaving The Crypto Community Confused

The Twitter crypto community have been left bewildered by Celsius Network as it continued to pay weekly rewards.

Bishal Kumar Chanda2 min read
Celsius Continues With Weekly Rewards Leaving The Crypto Community Confused

The crypto community members on Twitter have been left bewildered by Celsius Network as it continued to pay weekly rewards despite pausing withdrawals two weeks ago.

As previously reported, the crypto lending platform Celsius paused withdrawals on June 12, citing extreme market conditions. Reports followed that the firm faces liquidity issues that may result in insolvency, potentially putting users’ funds at risk.

Celsius weekly rewards

Simon Dixon tweeted on Monday over receiving about $4,000 worth of crypto rewards but could not withdraw them. “Email on one of my accounts. Can’t withdraw, but @CelsiusNetwork is still paying out. I’m curious if you think the rewards should still be coming? Thoughts?” the tweet read.

Upon searching “Celsius still paying” on Twitter, you can find countless users raising questions over the lending platform. Furthermore, some users are calling it “insulting” that Celsius keeps paying weekly rewards while holding their “crypto hostage.”

Celsius holding user crypto hostage

Meanwhile, the Celsius website is currently undergoing revamp due to liquidity issues. But the company is still advertising APYs of up to 18.63% on crypto deposits, which many have argued to be unsustainable.

At the time of writing, the native token from the DeFi platform Synthetix (SNX) is the only asset this promotion offers. Further, Celsius has listed top-tier stablecoins roughly at 9% APY. Also, Polkadot and Polygon are offered at APYs as high as 11.87% and 9.52%, respectively.

Despite not allowing users to withdraw from the platform, Celsius still offers 10% rewards on first deposits up to $250,000.

While the exact fate of Celsius funds is still uncertain, the company has onboarded advisors reportedly in the face of potential bankruptcy. On June 14, Celsius also hired lawyers to restructure the company amid its financial woes.

On Monday, rumors spread that Celsius CEO Alex Mashinksy allegedly tried to leave the country via Morrison Airport in New Jersey but was stopped by authorities. Apparently, the story originated from crypto analyst Mike Alfred. However, the firm has reportedly denied any such accusations.

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