- Cake DeFi reassures clients that their business continues to run smoothly despite the market crash.
- The platform claims the processing of withdrawals continues.
- It stresses the importance of being transparent, especially to customers.
Crypto platform Cake DeFi assures its clients that the business is still running smoothly despite the current market conditions, which saw crypto lending platform Celsius halting all withdrawals and transfers between accounts.
Following Celsius’ criticized announcement, Cake DeFi says the platform continues to process withdrawals within 24 hours, albeit some taking 72 hours. They added that it is during these times that great service is of greater importance.
[W]e want to reassure our customers that the current market conditions have little or no impact on Cake’s daily business. As usual, we are processing 99% of all withdrawals within 24 hours, even though some can take up to a maximum of 72 hours.
The company stressed the importance of being transparent, especially to its customer base. “We ensure clear asset segregation whereby customers’ assets are kept separate from the company’s operating accounts,” says Cake. “Our users have full control, [ownership, and authority] over their funds.”
Notably, Celsius uses capital deposited in its platform to fund its own investments and cover loans it makes to other clients. Celsius, in return, pays users up to 30% interest weekly. With the extreme market conditions, the potential returns that Celsius can earn on its investments have diminished. This jeopardizes the liquidity of its business model.
While Celsius has not been as transparent as its community wants it to be, Cake DeFi claims that it provides transparency “on all transactions, yields, masternodes,” and other data deemed valuable by its clients.
Recently, Cake DeFi secured a license to operate regulated cryptocurrency operations in Lithuania from the country’s Registrar of Legal Entities. The license will allow Cake to provide crypto trading services in Lithuania and other European countries.