Celsius Assures the Community of Getting a Solution to the Ongoing Crisis
- Celcius assured the community that the process of consulting experts across numerous fields will aid the discovery of a swift solution.
Due to the ongoing crisis over the firm’s decision to halt withdrawals, Celsius has released a memo via a post on medium, assuring its community of a full commitment to solving the ongoing crisis. According to the blog post, the team revealed its working on how best and fast to stabilize liquidity and operations. Celsius revealed its working tirelessly to find solutions in other to engage the community in subsequent times.
Additionally, the team revealed its commitment to embark on a notable quest to protect investors’ assets while seeking the available options. Celsius indicated that some of the options include inciting strategic transactions while restructuring its liabilities including other mediums.
However, Celcius conceded that the whole process can be time-consuming due to its complexity and the team’s intention of exploring every available option. Nevertheless, Celcius assured the community that the process of consulting experts across numerous fields will aid the discovery of a swift solution.
Conclusively, the team expressed delight over the cooperation of the community, Celsius disclosed how it has been a source of motivation with the promise of relaying information in due time.
Problems in the Celsius Network
For days now, Celsius has been controversially trending due to the lending platform’s decision to halt withdrawals, swaps, and transfers between accounts. The main point of concern is that Celsius prevented its users from accessing their money with prior notice.
Notably, this decision didn’t sit well with many, and it has sparked unrest in the community. Members of the community had frowned at the decision, including threats of a lawsuit against Celsius.
Research into Celsius’s stand regarding the situation revealed that the firm has borrowed DAI with a current collateralization ratio of 195.93 percent with over $545 million in locked WBTC as collateral. This data is provided by Oasis; a protocol that aids users to borrow DAI against approved collateral. In addition, Celsius currently has a liquidation price that’s 26 percent beneath the present price of BTC, $64,165.17. This situation is a point of concern for users because if Celcius doesn’t increase its collateral, the whole position which is close to half a billion will get liquidated on-chain.
Notably, the firm has input more collateral numerous times since the inception of the troubles but has yet to repay the loan. Within that period, their position went below 5 percent away from liquidation.
Worth noting, that members of the community had bemoaned the silence of Celsius during this turbulent time. Before when the firm halted withdrawals, members of the community discovered that the firm sent $320 million to FTX without any explanation to the community.
This indicated that the team is working behind the scene, yet without proper engagement or assurance of when they’ll resume withdrawal.
At the moment, the blog statement came at the best time, though not what members of the Celsius community want to hear, still it indicates the team’s willingness to see to the end of the matter and offer the best solution.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
