There continues to be a lot of turmoil in the cryptocurrency market.

Digital assets such as Bitcoin or Ethereum are also under selling pressure on Wednesday.

The so-called Celsius Network is primarily responsible for this: the company has accepted digital currencies and promised interest.

These cryptocurrencies are then lent to others who want to do business with them.

The volume should be around 12 billion dollars.

Franz Nestler

Editor in Business.

  • Follow I follow

The problem now is that in this bear market many just want to get out of Bitcoin and Co - and the Celsius Network was not prepared for this and now had to freeze payouts.

Whether it will ever continue again is an open question.

It is particularly explosive that the American regulators had already put tight shackles on crypto lenders such as the Celsius Network: since April, the average customer has not been allowed to invest any more money in the United States.

nervous market

Nevertheless, Nuri – a German neo-bank – continued to promote the model in a cooperation until the very end.

Nuri himself said that a small number of customers were affected - but not how many.

A system similar to that of the Celsius Network was previously affected with Titan.

This has made the market nervous as to whether more companies have set up their business models on shaky ground.

Example Coinbase: The price of the American crypto exchange has collapsed;

This year alone from around 230 dollars to just over 50 dollars, almost minus 80 percent.

1100 employees are to be laid off.

It remains to be seen how crisis-proof the business model is - the accounts there would not be protected if the worst came to the worst.

The second-largest digital currency, Ethereum, has been hit particularly hard in the current bear market. At times, it was only trading just above the $1,100 mark – in November last year it was more than $4,800.

Bitcoin also gave way again and at times was only just above the $ 21,000 mark.

The overall digital currency market, meanwhile, has shrunk to around $950 billion - down almost $50 billion from the previous day.