Why Celsius Lawsuit Spells Big Trouble For Defi Lenders, And Why Chronoly.io Lending Protocol Could Be A Safer Option

Celsius Network is considered the nightmare of the cryptocurrency market, and there are valid reasons to do so. The ongoing Celsius crisis has been dubbed the crypto communities' "Lehman Brothers moment," which has caused the market to crash and worsen the already stressed ecosystem. The company has been facing several lawsuits for mismanaging its customers' investments.

With this, one thing that is certain is that this issue will have a serious repercussion on the cryptocurrency market, particularly on the DeFi (Decentralized Finance) lenders.

The issue also highlights why critically evaluating the trading processes of each cryptocurrency is essential, and investors favor projects like Chronoly.io.

Chronoly.io is a new cryptocurrency platform, with its native token CRNO, in the market with real-world utility as well as a robust and transparent lending protocol. Chronoly's CRNO has registered over a 600% increase in its value during the pre-sale phase.

What is Celsius Network, and How did CEL fail?

Celsius Network is a blockchain-powered centralised platform that accumulated cryptos from retail investors by offering them a lucrative interest rate and lent the crypto deposits to large cryptocurrency firms at higher interest rates, to make profits. CEL is the native token of Celsius Network.

However, the lawsuit against Celsius Network's CEL has termed the company's operations a "Ponzi Scheme." As per the lawsuit, Celsius (CEL) misrepresented financial information for a reckless pursuit of high returns.

Since Celsius' native token CEL relied heavily on the repayment of the loans it issued to cryptocurrency firms and the value of tokens it had received from retail investors, the recent crypto market crash crippled the company. Reckless lending to untested ventures could not bring any return for Celsius. At the same time, the drop in prices of almost all the cryptocurrencies reduced the overall value of deposits the company had received from its retail investors. These things resulted in the company's liability exceeding its assets, leading to the threat of bankruptcy.

More frightening is the fact that the Celsius Network has paused all withdrawals, swaps, and transfers between accounts, leaving users locked out of their money.

Meanwhile, investors have become wary of investing in such projects that do not have a solid foundation and roadmap.

Chronoly is a safer, stable platform with a transparent lending protocol

Cryptocurrency investors have put their immense trust in Chronoly.io. They believe that the solid foundation of Chronoly's CRNO token has an excellent pedigree to match or even surpass the success of crypto projects like Ethereum and Bitcoin.

Chronoly.io is the first-of-its-kind fractional watch investment platform built on the Ethereum blockchain. The project mints NFTs of rare luxury watches of multinational brands such as Rolex and Richard Mille and allows people to gain fractional ownership of those timepieces by investing as little as $10. People can also buy 100% of any watches NFTs and redeem it for the physical version.

The most notable thing about this project is its transparency and usability. Chronoly.io mints NFTs of any watch only after purchasing the physical version of it. It means all NFTs minted by Chronoly are backed by real-world physical watches and are not susceptible to speculation or hype. This ensures the stability and security of CRNO, attracting more investors.

It also utilises a lending protocol for users to loan out their NFTs. People on Chronoly.io can instantly take out loans against their watch NFTs they are holding at competitive rates. CRNO is the native token of Chronoly, and holders can even stake their CRNO tokens in the project's lending pool to yield a passive income.

Chronoly has performed exceptionally well since its launch. Its price has soared from $0.01 to $0.06 in just a few weeks. Investors are bullish on its real-world utility and predict it to touch the target price between $0.50 and $1.0 before the end of the pre-sale.

More information on the Chronoly.io presale here:

Website: https://chronoly.io/

Presale: https://presale.chronoly.io/register

Telegram: https://t.me/Chronolyio

Twitter: https://twitter.com/Chronolyio