Since Monday, the sharp drop in crypto prices shook the crypto community. On top of that, citing extreme market conditions, crypto lending giant Celsius announced indefinitely pausing all withdrawals, swaps, and transfers between accounts. The price of Celsius’s CEL token fell over 50% after the news came out, while the rumors have been swirling around that they might be insolvent.
The same day, Cake DeFi, a Singapore-based fintech company providing decentralized finance services, addressed their customers that the current market conditions have little or no impact on Cake’s daily business.
The company announced they are processing 99% of all withdrawals within 24 hours, even though some can take up to a maximum of 72 hours.
“In such uncertain times, exceptional service is of even greater importance. Therefore, we are working harder than usual to ensure our services are working seamlessly,” said the team.
Full transparency
According to the representatives, safety and transparency are at the company’s core. Following the Singapore regulations, the fintech company ensures clear asset segregation when customers’ assets are kept separate from the company’s operating accounts. This guarantees users complete control, full ownership, and full authority over their funds.
Cake DeFi offers a one-stop platform where people can access all financial services at a single point with customer and community support.
The company reassured that the platform acts as a simple intermediary agent for its services. This provides users a “safe passage” or access to decentralized finance services.
As long as services are on the blockchain and accessible to anyone, all transactions are fully transparent. Technically, customers can make such transactions on the blockchain themselves.
“On Cake DeFi’s platform, we provide transparency on all transactions, yields, masternodes, and other information that would be valuable to our users. It is our promise to our customers – and how they continue to trust us with their funds,” commented the team.
Ahead of the competition
This level of transparency, provided by Cake DeFi, is in stark contrast to other CeFi platforms such as Celsius, which can arguably be likened to a “black box,” as it offers limited transparency or control.
Users cannot expect clarity on where the yields are derived from or if their funds are commingled with operational funds.
“As crypto investors continue to deal with the challenges of a volatile crypto market, we believe that crypto companies should take up the ante to provide assurance and protection to their users and their hard-earned money. Providing transparency and protection is not only an obligation for us: it’s a must,” claimed the company in an official statement.