A Liquidity Crisis at Celsius Could Bring Possible Market ContagionJun 24, 2022
Swan Bitcoin chief executive officer, Cory Klippsten fears that Celsius Network’s liquidity crisis as well as other centralized crypto lending platforms could be the beginning of a much larger collapse in the crypto lending space. Klippsten has been a critic of centralized lending platforms like Celsius and its ability to compensate users fully.
In an article and interview in Cointelegraph, Klippsten said, "It doesn't matter if you're an amazing CeFi lending platform, taking these retail deposits and lending them out the back end and giving them yield, or a terrible one, they're all going to get kind of dragged down.”
The leading crypto lending platform Celsius, paused withdrawals earlier this month after citing “extreme market conditions.” Three Arrow Capital and Babel Finance are among other crypto firms experiencing liquidity issues too.
Swan Bitcoin CEO against crypto lenders: Users are way under-compensated for the risk