Cryptocurrency losses continued on Monday, with Bitcoin’s little ones down more than 70% from November highs.
But two other developments should cause all crypto enthusiasts to think again about ownership.
Celsius cryptocurrency lending company is ask users to be patient as it figures out how to stay in business at a time when the business seems increasingly shaky.
The company is preventing users from getting their money back by freezing withdrawals due to “extreme market conditions.”
“We want the community to know that our goal continues to be to stabilize liquidity and operations. This process takes time,” Celsius said in a blog post Monday.
Meanwhile, another crypto lending company called Solend is trying to take control of the largest user accounts after deciding who owns the account too much influence over the platform.
“In the worst case, Solend can end bad debt,” the company said. “This can cause chaos, affect Solana’s network.”
Just chewing on this moment.
Crypto, which has long been praised by fans for its free and independent nature, is now considered by businesses that support digital investment as too dangerous to allow account holders to do what they want.
Very dangerous, that is, for crypto businesses, which face the financial dangers of the free market.
The withdrawal restrictions are a severe measure, seen in the banking world only during intervals of great turmoil, such as the Great Depression.
Private companies are trying to control investor accounts simply because their influence is too unheard of in traditional finance.
In the case of Solend, users of the platform prevented the move, but did not detract from the company’s self -reliance intent.
This happens when financial markets are created generally without formal regulation or oversight. Players begin to act in their own interests, and there is often little to stop people from doing what they enjoy.
Go ahead and put your money into cryptocurrencies if you believe the hype.
But sign in with your eyes open. You are generally your own.