A tumultuous week for cryptocurrencies

 Cryptocurrencies have been hot throughout 2021 and have been going down since the beginning

On June 14, Coinbase, the largest cryptocurrency exchange in the US, announced the reduction of 18% of its workforce, equivalent to more than 1,000 people. CEO Brian Armstrong explained that the company is growing too fast and the risk of a recession could create the "next crypto winter".

Two other well-known crypto companies, Crypto.com and BlockFi, also announced staff reductions. "The situation is very bad. Many businesses lay off employees, operations decline, cryptocurrencies become a laughing stock on Wall Street," said Jeff Dorman, a manager at Arca, a digital asset investment firm. in America, comments.

The world of cryptocurrency has also witnessed a significant shift as investors become less and less interested. The Celsius problem could also prompt a tightening of regulation of cryptocurrency lenders and push their value even lower.

Lending platforms like Celsius take customers' cryptocurrencies to lend to others and earn a portion of the interest. Celsius also invests client funds in high-risk decentralized finance (DeFi) projects for profit. Individual investors look to Celsius because the interest is up to 18.6% a year, much higher than the interest rate on savings at the bank. However, many people are now realizing that companies like Celsius act like banks, but lack the built-in legal protections found in the traditional financial system.
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