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Bitcoin plunges as major crypto lender halts operations

37 Comments
By KEN SWEET

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37 Comments
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Thank God and good riddance. Don't get me wrong! I wish I had gotten in early and cashed out for real currency. It would be some else's problem while I take the [real] money and run.

3 ( +7 / -4 )

What's that old adage...

If things appear too good to be true...

19% return? Lol

1 ( +4 / -3 )

I never bought crypto, so I can just sit here now and watch with impunity. I don’t wish pain or loss on any investor, but the crypto news was so just so loud and garish, I won’t miss it if it disappears.

1 ( +4 / -3 )

I dont feel too sorry for those who lost as so much greed in the world.

If its too good to be true then it usually isn't.

-2 ( +1 / -3 )

Time to get back in …big time!

1 ( +3 / -2 )

Anyone who though the 19% yield comes with zero consequences deserved to be scammed at this point.

Make money out of nothing and expect your digital asset to keep increasing in value is so stupid. It contribute nothing to society and is practically a huge ponzi shceme.

1 ( +3 / -2 )

Nobody complained when they shot up in value by ridiculous amounts. A volatile, virtual asset can go down as fast as it can go up. That has probably sunk in by now.

0 ( +1 / -1 )

Sounds like the turkeys who got invited to Thanksgiving are starting to realize what Thanksgiving is all about...

It's the latest high profile collapse of a pillar of the cryptocurrency industry. These meltdowns have erased tens of billions of dollars of investors' assets and spurred urgent calls to regulate the freewheeling industry.

"Urgent calls"? From those investors who are losing their shirt in this debacle, I guess. Well, for many the whole point was to stick it to the man and escape regulation. What goes around comes around and here you are now...

On Sunday, the cryptocurrency lending platform Celsius Network announced that it was pausing all withdrawals and transfers between accounts in order to “honor, over time, withdrawal obligations.” Celsius, with roughly 1.7 million customers and more than $10 billion in assets, gave no indication in its announcement when it would allow users to access their funds.

Doesn't sound good...

In exchange for customers’ deposits, the company pays out extremely generous yields, upwards of 19% on some accounts. Celsius takes those funds and lends them out to generate a return.

There is nowhere you can invest in in current finance or markets that could generate a 19% yield unless taking an insane risk of losing it all...Effectively, this is nothing more than a Ponzi scheme.

Even while Celsius was failing, the company's website advertised that users can “access your coins whenever, keep them safe forever.”

...

The move surprised investors and depositors. In online chats, they questioned why their investments weren’t protected.

A lot of people didn't read the fine print, it seems. On J-TV it is literally in fine print at the end of every and any crypto-currency TV advertisement.

It’s possible that Celsius’ investors, which include Quebec’s pension fund, may get their investment back before Celsius' depositors will.

An effing pension fund?!?!? You gotta be kidding me!! Suddenly the news about a move to more "riskier investments" by Japan's GPIF makes me VERY nervous...

“This was yet another bank run. You're not reinventing anything here. They were promoting their services as a better savings account but in the end, you're just another unsecured lender,” said Cory Klippsten, CEO of Swan Bitcoin, who has been publicly skeptical of Celsius' business model for years.

A cryptocurrency operator criticizing another cryptocurrency operator? Ahem. Let's keep this quote somewhere warm for potential later use should Swan Bitcoin get itself into trouble in the future as well...

1 ( +3 / -2 )

A cryptocurrency operator criticizing another cryptocurrency operator? 

Cryptocurrencies are decentralized. What are these operators you speak of?

-3 ( +0 / -3 )

The instability of the currency is part of its appeal, so as long as people understand these risks and choose to invest there is nothing to worry about.

The problem is when people are mislead into thinking this is some kind of secure investment that will for sure help them make money, then events like this make a lot of people panic and the results are obvious.

-1 ( +2 / -3 )

@Strangerland

A cryptocurrency operator criticizing another cryptocurrency operator? 

Cryptocurrencies are decentralized. What are these operators you speak of?

Sorry, semantics, I guess.

Somebody operating a business dealing in cryptocurrencies criticizing another person operating a business dealing in cryptocurrencies.

This better?

2 ( +2 / -0 )

I suppose this reminds me of all the other investment fads.

tulips.telecoms, anything internet, Dot coms, crypto, NFTs and what a great story, talking about Block chain and decentralized. Id it says get rich quick stay away. Go for boring, go for long term and ignore the noise. And stop chasing. All those YouTube channels and articles touting the BS, ignores the fact there are way way more losers than winners chasing that money. If you want proof Iook at all those active managers who say they know when and what to buy and sell. The truth is, they don’t. They will always win and take their fees.

0 ( +1 / -1 )

biden collapsed crypto, the stock market and gold all at the same time.

that takes some “skill”.

-5 ( +0 / -5 )

Tesla?

1 ( +1 / -0 )

Deflated little tiny bubble, please never change..

LOOOOL !!..

biden collapsed crypto, the stock market and gold all at the same time.

that takes some “skill”.

Conservative tears.. LOOOOOOL !!..

-1 ( +0 / -1 )

Tesla

Buying opportunities coming.

its not conservative tears, as people of all politics have lost half their retirement savings and pensions.

The misery of hard working Americans who were ready to retire but now can’t is a joke to you?

-3 ( +0 / -3 )

Just wait. We have seen market capitulations like this before, and we will again in the future. This is not the last you will hear about Bitcoin.

The real irony is that many of the haters continue to pay into the national pension. I won't ruin how that story ends.

1 ( +1 / -0 )

But Tesla is down. I bought Tesla early then cashed out at peak. Keeping cash now. What happened with previous stock buy? Elon is immature

0 ( +1 / -1 )

All in 100% margin, riding bitcoin to 100,000 within the year!

Maybe a bit early, but I like you thinking.

1 ( +1 / -0 )

But Tesla is down. I bought Tesla early then cashed out at peak. Keeping cash now. What happened with previous stock buy? Elon is immature

The whole market is down, so no big deal.

It's useless talking about an individual stock when almost all of them get dragged down by the market.

3 ( +3 / -0 )

Could it be Russian investors pulling out that caused a run?

-3 ( +0 / -3 )

Somebody operating a business dealing in cryptocurrencies criticizing another person operating a business dealing in cryptocurrencies.

This better?

Much.

2 ( +2 / -0 )

I'm certainly not buying any bitcoin. I've never looked at it as a valid investment strategy, too much volatility, I prefer more secure investments. But, if you were going to buy, now would be as good at time as any. It will eventually work its way back up, and this may be the last big dip left.

0 ( +1 / -1 )

I dont know why the U.S doesnt just ban it and kill it off altogether. China has already done so and its a smart move. Money going into bitcoin is money that should be going into stocks, housing, business or other forms of productive investment. Hell, even straight up consumption would be better. Bitcoin is speculation on steroids. The share market is bad enough but at least it has its uses.

How is it in the national interest of any country to allow this speculation to exist within their borders?

Ban it and end it.

-1 ( +3 / -4 )

I dont know why the U.S doesnt just ban it and kill it off altogether.

Because it's impossible. It's decentralized - can't shut it down.

China has already done so and its a smart move.

You're kidding yourself if you think that Chinese people aren't still trading bitcoin. They just have to be more quiet about it now.

2 ( +3 / -1 )

Golly, it's almost as if a made up "currency" lacking the faith and credit of the Central Bank of a sovereign nation, without the ability to control the money supply, which cannot be used to purchase real goods and services on anything close to a normal level, and which is used mostly by criminals (money laundering, cyber terror, trafficing of all types, tax evasion) and speculators could be - just spit-balling here - COULD BE a scam.

Who'd have thought that? Oh yeah, Warren Buffet.....

0 ( +0 / -0 )

I’m glad you’re amused. I’m laughing with my actual currency all the way to my actual bank.

0 ( +1 / -1 )

biden collapsed crypto, the stock market and gold all at the same time.

that takes some “skill”.

The only person who can fix this is Trump?

1 ( +1 / -0 )

Yes, that is correct. As previously shown.

-2 ( +0 / -2 )

Hopefully GPU prices will come down a bit too.

0 ( +0 / -0 )

Bitcoin worth remained in a bearish zone beneath the $25,000 assist zone. The worth spiked beneath the $21,000 degree and settled properly beneath the $23,000 degree.

A low was shaped close to $20,824 and the worth is now trying an upside correction. There was a transfer above the $22,000 resistance degree. Nonetheless, the worth remains to be properly beneath the $24,000 degree and the 100 hourly easy transferring common.

https://cryptospacey.com/bitcoin-shows-signs-of-recovery-23k-presents-resistance/

0 ( +0 / -0 )

This is meant to be because crypto currency needs to be backed by govt to ensure control.

Um, that's exactly what a cryptocurrency is NOT. The strength of a cryptocurrency is that it's not backed by a government, and can't be controlled.

It's like you're saying "water just needs to be air to ensure we can breath it". It's a pretty ridiculous comment.

-1 ( +0 / -1 )

Because it's impossible. It's decentralized - can't shut it down.

They can ban the transfer of cash into crypto exchanges from any American bank and ban the transfer of withdrawels from exchanges to any American bank.

Lets start with that and see what happens.

0 ( +0 / -0 )

They can ban the transfer of cash into crypto exchanges from any American bank and ban the transfer of withdrawels from exchanges to any American bank.

Ahh, so make it into a nanny state.

0 ( +0 / -0 )

government should control cryptocurrency, thats the only way to prevent crimes

0 ( +0 / -0 )

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