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The Celsius Network halts withdrawals…not your keys, not your money! by fijimermaid

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· @fijimermaid ·
$1.84
The Celsius Network halts withdrawals…not your keys, not your money!
https://news.coincu.com/wp-content/uploads/2022/06/Celsius-Network.jpg

This [article](https://www.theverge.com/2022/6/13/23165401/defi-cryptocurrency-celsius-network-pause-withdrawals) from Verge explains how companies that have little cash to cover their debt  obligations initiate capital controls (halting withdrawals) to prevent a bank run (lots of people getting scared and withdrawing their money quickly).  

This is only the beginning.  Lots of crypto companies do not have the cash or the collateral to pay down, service or secure their debt obligations.  Margin calls increase in a tightening credit market.  That makes them incredibly vulnerable to bankruptcy. 

It's important to hold your private keys.  Because if any of these companies go bankrupt, your crypto could be part of the bankruptcy proceedings, and your assets could become someone else's assets, like secured creditors.

Stay frosty and solvent people…accumulate cash…the global economy is going to get worse before it gets better.
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vote details (64)
@lupafilotaxia ·
Hi @fijimermaid

No doubt removing or suspending withdrawals temporarily or for unknown time generates more distrust towards the cryptocurrency market, this will make people go into collective panic.

Best regards, be well.
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@fijimermaid · (edited)
After the bank runs of the 1930s during the US Great Depression, the US found it necessary to insure depositors’ funds.   This is why the Federal Deposit Insurance Corporation was founded in the United States in 1933.  And the Securities Investor Protection Corporation in 1970.  Crypto needs the same thing if we are going to have custodial institutions for crypto.   But we can easily keep our own keys, which ensures that our money is safe.
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