Crypto: Celsius abruptly cancels AMA session as company navigates ‘very difficult challenges’


Crypto lender Celsius was scheduled to hold an Ask Me Anything session with its chief executive, Alex Mashinsky, on Friday. But the company abruptly canceled just minutes before the 1 p.m. Eastern event, and put out a short 13-second video clip on its YouTube channel instead.

“Hi everybody, while we navigate some very difficult challenges, we will be pausing AMA’s for now, so Celsius can focus on this very important work for the community,” Mashinsky said in the video, which had been viewed more than 5,000 times the hour after it was posted.

After Celsius canceled a similar AMA session on Twitter Space on Tuesday, Friday’s Q&A would have been the first chance for customers to ask Celsius leaders about the company’s recent decision to pause withdrawals, swaps and transfers for account holders since Sunday.

Celsius has reportedly hired restructuring attorneys to advise on possible solutions for its mounting financial problems, according to a report by The Wall Street Journal.

Celsius’s decision “to cancel a meeting such as the ‘Ask Me Anything’ session would not necessarily be unusual where a company is in a distressed situation and seeking to formulate a response to the market environment,” Melissa Bender, a partner at law firm Ropes & Gray, wrote in an email to MarketWatch.

“Such a meeting could have unintended consequences and inadvertently make the situation worse although the intent may be to assuage investor concerns,” Bender wrote.

See also: As crypto crash deepens, here are 4 signs the worst could be yet to come

Still, many disappointed users turned to Twitter TWTR, +1.12% to voice their frustrations about the Celsius platform and cancelation after the latest AMA was canceled.

iframe.twitter-tweet { width: 100% !important; }

“Are you f— kidding?!” tweeted one. “Today’s AMA that’s been posted up on YouTube for the last week is cancelled 10 MINUTES before it’s set to go live, with 2000 people watching?! Are you trying to mentally break people as well as financially?!” 

“Was expected,” chimed in another follower, “but also feels worse.”

Representatives at Celsius were not immediately available for comment.

But Celsius is not the only crypto lender under fire. The Hong Kong-based crypto company Babel Finance halted redemptions and withdrawals on Friday, a notice from the company’s website stated.

“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures,” the firm wrote.

Some crypto companies including Coinbase COIN, +0.33% and BlockFi have recently announced layoffs in wake of dipping crypto prices.

See also: Why is crypto crashing? Mark Cuban says ‘crypto is going through the lull that the internet went through’

The moves come as the price of major cryptocurrencies have plummeted recently. Bitcoin BTCUSD, -0.67% was trading 70% lower than its all-time high, and ether ETHUSD, -0.55% was down almost 80%. But one bitcoin bull, Microstrategy’s MSTR, +3.88% Michael Saylor, said he believes the recent dip in crypto prices, and bitcoin in particular, is “absolutely” a buying opportunity.

Bitcoin was trading at just above $20,500 on Friday, down 29.54% over the past five days, and ether was trading just above $1,070 on Friday, down 35.68% over the past five days, according to Dow Jones market data.

This article was originally published by Read the original article here.

Previous articleCoronavirus Update: CDC action awaited as FDA backs vaccines for youngest kids
Next articleU.S. oil futures log first weekly losses in 8 weeks


Please enter your comment!
Please enter your name here