(Bloomberg) -- Crypto lender Celsius Network Ltd.’s shock announcement that it’s freezing withdrawals sparked a rush by companies in the digital-assets sector to reassure markets about the health of their operations.  

BlockFi, Nexo, Tron and Tether were among those who took to Twitter in the hours after Celsius’s announcement, which accelerated a crypto rout that erased more than $100 billion of market value. With memories of last month’s collapse of the Terra ecosystem still fresh, attention is turning to decentralized-finance projects that offer eye-popping yields as well as stablecoins billed as pegged to an asset like the US dollar. 

Read More: Crypto Lender Celsius Stops Withdrawals, Fuels Market Slump (1)

Zac Prince, chief executive of crypto lender BlockFi, said its systems were operating normally and that it had “zero exposure” to assets such as a version of Ether (stETH) that had appeared to lose its peg to Ether over the weekend.

Nexo, another competitor, went a step further. The London-based company said it offered to buy Celsius’s “remaining qualifying assets” and followed by tweeting that it had sent a formal offer to Celsius. 

Celsius’s announcement compounded a crypto slump driven by expectations of higher interest rates following worse-than-expected US inflation data on Friday. Bitcoin extended a seven-day decline by falling 15% to $23,250, the lowest since December 2020. Ether tumbled 18%, and altcoins like Solana and Avalanche suffered declines of similar magnitude. 

Read More: Bitcoin Tumbles to 18-Month Low as US Inflation Impact Spreads

Although stablecoins mostly weathered the selloff, they weren’t immune. Crypto entrepreneur Justin Sun’s newly launched algorithmic stablecoin USDD slipped to as low as 98.4 cents from its $1 peg, and was trading at 99.2 cents at 4 p.m in London. 

Sun, the founder of blockchain network Tron, said the platform had added $700 million worth of USDC, another stablecoin, to reserves meant to serve as a backstop to the USDD peg. Larger stablecoins like USDC and Tether are purportedly backed by dollars and dollar-equivalent assets. 

Tether, which operates an eponymous collateralized dollar-pegged stablecoin and is an investor in Celsius, tweeted a link to a blog post that said its stake represents “a minimal part of our shareholders’ equity.” It added that there was “no correlation” between the Celsius investment and its own reserves. 

Tether was trading at its dollar peg on Monday afternoon after briefly slipping as much as 35 basis points, data compiled by Bloomberg showed. 

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