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Celsius Crypto FOMO Lured Finance Pros Too: Lionel Laurent (1)

June 13, 2022, 10:06 PM

Another day, another blowup in the hype-driven world of cryptocurrency lending.

And this time there’s a cautionary tale where even sophisticated bankers and pension funds were vulnerable to crypto’s Fear Of Missing Out (FOMO) chasing unrealistic rewards in the unregulated world of “decentralized finance.”

Celsius Network Ltd.’s freezing of withdrawals, swaps and transfers on its platform Monday came just weeks after the $60 billion implosion of stablecoin Terra, and barely a day after Celsius boss Alex Mashinsky dismissed talk of halted withdrawals as “misinformation.”

Even before selling pressure began to batter DeFi platforms, regulators had been ringing alarm bells on Celsius for some time. The platform, which ...