Troubled crypto lender Celsius (CEL) seems to haven’t any intention of being frozen out of the crypto world – and is constant to take motion to keep away from doable insolvency because it has been hurriedly repaying the money owed it owes.
Blockchain analytics information exhibits that Celsius has just lately repaid some USD 78.1m value of USD coin (USDC) to the lending protocol Aave (AAVE) in a collection of transactions. Etherscan information confirmed that one of many funds made on July 11 to Aave was value over USD 20m.
The agency nonetheless has round USD 120 million of debt to repay on each Aave and Compound, per Zapper statistics, however has already freed up hundreds of thousands value of tokens similar to wrapped bitcoin (WBTC) in collateral. Final week, Celsius deposited USD 500m of WBTC on the FTX trade shortly after reclaiming some USD 450m value of the token in collateral.
The troubled crypto lender has made no indication of its technique in paying off money owed, however seems eager to keep away from the fallout of pressured liquidations. Most of the mortgage offers use crypto as collateral. Ought to the worth of a coin fall under a certain quantity, the place is mechanically liquidated, an element that would successfully go away Celsius unable to pay again its money owed – and thus needing to file for chapter.
Nonetheless, for now, sources of funding to pay again the loans are unclear. Cryptonews.com has contacted Celsius with a request for remark.
On Reddit, one poster wrote that they hoped Celsius may “get again to regular” after a month of disruption, including: “Clearly the belief is and ought to be gone, however at the least traders will hold their cash.”
One other quipped, sardonically:
“Wake me up once I can withdraw.”
Celsius suspended withdrawals in June, leaving scores of customers unable to entry their funds.
At 07:34 UTC, CEL, ranked 112th by market capitalization on Coingecko, trades at USD 0.733 and is down 6% in a day and 32% in every week. And whereas it is up 88% in a month, CEL is down additionally 88% in a yr.
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