Celsius Network Pays Off Over $110M to Service Loan; Liquidation Price Drops To $4,966
- The Block Analitica data shows that crypto lender, Celsius, has now paid over $110 million in bitcoin loan repayment. However, the company’s issues are still not over yet.
A Block Analitica data shows that the Celsius network has repaid a $110 million loan today, thus lowering its liquidation price to $4,966. The payment is towards its bitcoin loan. Following the repayment, Block Analitica now ranks Celsius’ WBTC-A vault low-risk.
Celsius’ liquidation price drops to $4,966. It was previously $8,838 earlier in the day and $12,243 as of last Thursday. On July 3, the crypto lender paid $50 million to offset an Aave loan. Before paying off its Aave bitcoin loan, data shows that Celsius transferred 67,000 ETH to an unknown wallet. The value of the ETH moved is worth $72 million.
On-chain monitors of this transaction state that it is typical for crypto firms to transfer their tokens to exchanges. Then, dump them. Recently, Celsius has been consistent in reducing its loan debts. The moves will also enable the crypto lender to lower its collateral.
Celsius Market Outlook
It has been over three weeks since Celsius paused withdrawals on its platform. The crypto lender has prevented investors from accessing their funds. Some of them still believe that their funds aren’t lost forever. However, most are unsure whether they can still withdraw their funds.
They don’t know whether the company can find a way out of its liquidity issues. Despite its financial crisis, Celsius’ native token (CEL) experienced a short squeeze. It has gained 7.89 percent in the past 24 hours and trades at $0.9092, according to Coinmarketcap data.
Last week, a Celsius official blog post gave updates regarding the present state of things with the firm. However, the blog didn’t provide details regarding when normal operations will resume or when customers can start withdrawing their funds.
Likely, the CEL’s price can’t remain on the upward trajectory for long. That’s because Celsius’ customers are gradually losing hope and trust in the company. They no longer believe that the company can recover from its insolvency issues.
Over the weekend, Celsius announced a reduction of its staff by nearly 25 percent. The firm blamed the current crypto winter for its decision. Many crypto firms are struggling to survive this crypto winter and have resorted to various means.
Some are reducing their staff strength to achieve this purpose, while others are restricting withdrawals. Vauld (another crypto lending firm) is the latest company to join the list.
Vauld didn’t just halt withdrawals; it also halted deposits and transfers. Its reason was the same as others – the general crypto market downturn. It is not unlikely that many crypto firms will toe the same line soon.
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.”
