Embattled Bitcoin and altcoin platform Celsius has transferred approximately 25,000 Wrapped Bitcoins (wBTC) worth $528.9 million to crypto exchange FTX. After that, some people in the community were worried that a dump was coming. Here are the details…
Celsius has transferred a large amount of altcoins
The major transfer to the exchange comes after the platform fixed all the wBTC collateral of its loan by paying the remaining $41.2 million in debt to the Maker (MKR) protocol. However, some are worried that a dump from wBTC’s exchange could follow soon and push Bitcoin prices down. So, the community isn’t sure what the transfer means. Others were more hopeful that the move could be in preparation for replacing Celsius’s wrapped Bitcoins for BTC. This could bode well for depositors who hope their Bitcoin withdrawals will eventually reopen on the Celsius platform.
Bitcoin is up 8% in the last 24 hours. Thus, it broke above $21,000 and is even pushing $22,000. This shows market participants taking the news step-by-step. The 25,000 wBTC posted to FTX follows the news earlier today that 150,000 BTC could potentially be released as Mt. So far, both Celsius and CEO Alex Mashinsky have remained silent about any funding movement.
Celsius prepares to make a comeback
Celsius has been at the center of most crypto discussions in the past month, as we reported on cryptokoin.com. The lending platform had to pause withdrawals, transfers and swaps on its platform, citing extreme market conditions. However, this was only the beginning of his problems. However, Celsius is making moves to pay off its debts. It lowered the liquidation price by more than 200 percent.
At the start of the week, good news came for the Celsius loan platform. Previously, the company had reduced the liquidation price to $16,582. However, he had added 7,000 BTC to his treasury, which was at risk due to the volatile nature of Bitcoin. Therefore, the company continued to add to its position to lower the liquidation price in order to save the platform.
Celsius settles Maker payments
Crypto lawyer Joni Pirovich, Director of Blockchain & Digital Assets, said on July 7 that Celsius repaying its loan position with Maker will ultimately help its clients. Pirovich used the following statements:
The Maker protocol relies on overcollateralized loan positions, so $41 million worth of DAI was settled. It has now paid out 21,962 WBTC of capital available to meet customer withdrawal requests.
Pirovich added that even if Celsius files for bankruptcy, repaying the loan position and withdrawing collateral can improve customers’ position. Pirovich said the real question was “what will Celisus do with the collateral withdrawn”.
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