Common sense should have told you beforehand: 17 percent return - something can't be right.
But that’s exactly what the Celsius Network advertised and wanted to ensure with cryptocurrencies.
This can also work as long as the market is bullish.
The fact that all payments have now been stopped shows that this did not work - also because the market for digital currencies has been tumbling for some time.
But greed eats away at some brains in this case: the interest rate is always a sign of the risk – there has never been anything like 17 percent interest without risk, there is none and there will never be one.
In this case, it was more likely that the interest rate was still too low.
It is particularly annoying that this case could have been prevented.
Because when the rate of the cryptocurrency TerraUSD slipped weeks ago, it was almost exactly the same business model.
If prices keep falling, Celsius Network won't be the only crypto company facing bankruptcy.
This leads to two observations: On the one hand, the market has become so intertwined that news like this pulls the entire industry straight into a negative maelstrom.
On the other hand, it shows that – if you are already investing in digital currencies – you should keep your own account.
Because then the money is still safe even if the price falls and not just anonymous insolvency assets.