It was only a few months ago that our nation was in the midst of a crypto currency boom. Bitcoin and Dogecoin and their ilk where plastered all over the news as Americans grew interested in this new, underground economy…in part due to the boredom and forced fiscal responsibility of the coronavirus pandemic.
Heck, we even had Matt Damon starring in cringeworthy commercials promoting cryptocurrency trading platforms during the Super Bowl.
But this week, as inflation soars and the real economy sputters, the cryptocurrency experiment has crashed violently, causing a number of platforms to do the unthinkable.
Cryptocurrency companies on Monday blocked users from withdrawing funds as the value of bitcoin and other prominent digital assets plunged.
Crypto lending company Celsius Network announced late on Sunday night that it would freeze all withdrawals and transfers due to “extreme market conditions.” The move sparked an enormous selloff, with the price of bitcoin falling 12 percent to its lowest level since December 2020.
Celsius wasn’t the only one:
Binance, the world’s largest crypto exchange by trading volume, said Monday morning that it was freezing some bitcoin withdrawals “due to a stuck transaction causing a backlog.”
The unregulated nature of the crypto market could mean that there is little to no legal recourse for investors, and the news of these sudden arbitrary losses could push the entire cryptocurrency economy into an even more violent tailspin in the coming days.