The center of all crypto controversy in the past month has been Celsius. It was the first of many problems for the lending platform. They had to stop withdrawals and transfers from its platform. Celsius seems to be taking the situation on the chin. Despite what other platforms have done it has moved to settle its debts. In fact, Celsius has beaten down the liquidation price of its platform by more than 2000%.
Celsius Loans $120 Million
Celsius, a lending platform that allows users to lend bitcoins online, had good news this week. It was able put more money toward its loans. The firm had previously added 7,000 BTC, which had reduced its liquidation cost to $16,582. But the platform was still vulnerable due to bitcoin’s volatile nature. The company continues to build on its position in order to reduce the liquidation cost to save the platform.
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Celsius reported over the weekend that it had increased its position again. In a string of payments since July 1, Celsius has paid $142.8 million in total. This latest payment was the largest, with Celsius paying $64 Million in DAI stablecoin to its loans. This payment was made just hours following another major repayment of $50,000,000 in DAI stablecoins.
Celsius’s liquidation price has been lowered to $4,967. That is a comfortable level for both the lending platform and the users of the service, who continue to hope to get their money back. Celsius’s outstanding loans now sit at $82 million with an overcollaterization ratio above 577%.
Source: TradingView.com CELUSD| Source: CELUSD on TradingView.com
Are Users Going to Get their Coins Back?
Celsius is still to clarify with users if their platform-locked funds will be returned. There is a good portion of the market that has considered these coins lost, but with Celsius’ multiple loan repayments, it continues to spark hope in the hearts of investors that they would be able to one day withdraw assets again.
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Many users have claimed that the lending protocol continues to pay them rewards for their holdings, despite being blocked from withdrawing. CEL, the native token of the lending protocol, experienced significant gains after it suffered a severe loss in response to being blocked from withdrawing funds.
Last communication was through Medium, which announced the platform’s ongoing efforts towards stabilizing liquidity as well as restoring operations. It did not provide any information on when it would restore withdrawal options. However, it did state that it continues “to take important steps to preserve and protect assets and explore options available to us.”
Featured Image from Reuters. Chart from TradingView.com
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