According to Celsius Network’s leadership, the repercussions of the crypto market’s high volatility have had little impact.
Celsius CEO Alex Mashinsky informed his more than 172,000 Twitter followers that “all funds [were] safe” and that the platform would continue to operate.
The statement looked to be in response to a now-deleted tweet from Twitter user David Belle. The Twitter user claimed that the platform had been “completely wiped out.”
Mashinsky, on the other hand, acknowledged the “extreme market volatility” that is now affecting projects like Terra (LUNA) and the stablecoin TerraUSD (UST).
Celsius Network ‘not involved in any Luna bailout’
Following a massive sell-off, the LUNA price has plummeted more than 93% in the previous 24 hours to $2.18. On the other hand, UST has dropped around 40% to $0.55.
Do Kwon, Terra’s co-founder, hinted at a “recovery plan” on Tuesday. Later, he added that he supported community recommendations to expand the project’s minting capacity. Meanwhile, Mashinsky stated that the platform did not involve itself “in any Luna bailout” to save the project.
“Our top priority is to ensure that all digital assets on our platform remain safe and secure,” Rod Bolger said. He is the chief financial officer at Celsius Network.
“Our front office teams also think and act like risk managers to ensure that we do not expose in any significant way to market swings.”
Uncertainty around UST
The uncertainty surrounding the de-pegging of the UST from the US dollar has impacted the prices of prominent cryptocurrencies. These include Bitcoin (BTC) and Ether (ETH), both of which have dropped more than 21% in the previous week.
Attempts to shore up the peg when both LUNA and BTC reserves failed, and as uncertainty gripped the market, both UST and LUNA plummeted to previously inconceivable heights.
Binance, a major cryptocurrency exchange, also briefly stopped LUNA and UST withdrawals on Monday, blaming network congestion.