Celsius Network clarifies that the platform is working fine amid market instability

According to Celsius Network's leadership, the consequences of high crypto market volatility have had little impact on the project.
According to Celsius Network's leadership, the consequences of high crypto market volatility have had little impact on the project.

According to Celsius Network’s leadership, the consequences of high crypto market volatility have had little impact on the project. Celsius CEO Alex Mashinsky reportedly responded to a now-deleted tweet from a Twitter user, David Belle, claiming the platform had been “completely wiped out.”

He clarified to his more than 172,000 Twitter followers that “all funds [were] safe” and the platform was still operating. Mashinsky acknowledged the “extreme market volatility” that is now affecting cryptocurrencies like Terra (LUNA) and TerraUSD, a stablecoin (UST).

Heavy instability in the crypto market

Following a massive sell-off, the LUNA price has declined more than 90% in the last 24 hours to $1.87 at the time of publication, while UST has dropped around 30% and is trading around $0.69. On May 10, as we reported, Terra peg faced extreme instability during the market crash when UST crashed to $0.67. But today, everyone was shocked when it went down to as low as $0.25. Do Kwon, Terra’s co-founder, hinted at a “recovery plan” on Tuesday, later adding that he supported community recommendations to expand the project’s minting capacity. 

Mashinsky, on the other hand, stated that the platform was “not involved in any Luna bailout” to preserve the project.

The company’s top focus is to maintain the safety and security of all digital assets on its platform, Rod Bolger, Celius’ chief financial officer, said. 

“Our front office teams also think and act like risk managers to ensure that we are not exposed in any significant way to market swings. Our liquidity position remains very strong.”

The price of major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) have plunged more than 21% in the previous week due to the uncertainty surrounding UST’s de-pegging from the US dollar. The crypto exchange giant Binance temporarily halted LUNA and UST withdrawals on Monday due to network congestion, as TheCoinRise reported.