The list is about to pile up, although there are three known centralized exchanges that have made the news so far, not to talk of the ones that didn’t make the news, or the ones that have limited the amount in dollars to be withdrawn from its platform. Limiting their customers from withdrawing because they obviously have limited liquidity. They promised to be different from the banks, but the bear market is showing how similar their operations are with the banks.
Celsius action affected the crypto market because their platform holds approximately 1% of the total bitcoin supply. Halting withdrawals caused a great wave of panic in the crypto market, BlockFi had to get some help from FTX regarding liquidity scare in which FTX pumped the sum of $250 Million into it. I believe this bear market has reached the stage where we can say it’s as tough as the last one. I only wish people are taking lessons and reinforcing their platforms for the future. This period has shown just how bankrupt crypto companies and platforms can go when the winter comes.
Rumor has it that Celsius has hired a lawyer for a potential bankruptcy filing case.
We have the Luna/UST crash that went tumbling and made lots of people lose all their assets. Billions of dollars were lost, even after a new chain was forked which is the new Luna, it still didn’t make any difference because the reputation of the team has been wrecked, only takes the grace of God get it revived.
Coinflex is a crypto exchange I am just knowing for the first time, I guess it doesn’t have numbers when it comes to users, so expect its action not to have any impact in the market compared to when Celsius halted withdrawals. While this is the case, it still shows how much you shouldn’t trust centralized platforms. Current coinFlex users are helpless with their money stuck in the platforms hoping to get update from the platform on June 27. CoinFlex said it will give an update on June 27 to when withdrawals will resume. If they had their assets on Decentralized exchanges this shouldn’t have been the case for the users.
I repeat, these people can not be trusted, they can come online and give updates on how they have lots of money in the reserve to back customers assets should incase something like this happens, but when it happens you see them looking helpless. It’s obvious that these platforms use users assets to risk on other platforms to make money, and just like the banks, they always want to over leverage users funds. But the bear market will always filter them.