So this isn’t crypto specific but it obviously can have a big knock on affect, and if I posted this on the celsius sub I would be accused of spreading fud by those who don’t want to hear the risks they are taking.
Celsius give you a small amount of interest in return for you leaving your Bitcoin and other cryptos on their exchange.
They then invest huge amounts in risky defi protocols such as Anchor Protocol who were offering 20% on the Terra stablecoin.
Celsius have admitted they had half a billion invested on Anchor, but before this dangerous game of musical chairs stopped they managed to pull the money out
But this is what these exchanges are doing.
This time they got lucky.
Celsius, Nexo, Blockfi… get your coin off them.
They are doing the same shady shit that lead to the 2009 financial crisis.
Exchanges are risky. Stablecoins are risky. Defi is risky. Counter Parties risky.
To sum up: You are taking a ridiculous amount of risk for a small return.
It’s not a case of if one of these exchanges goes bust but when.
Get out when you smell the smoke because when the fire breaks out you will crushed in the rush to get out with all exits closed.