The Celsius Network has been experiencing a lot of issues, which has caused a lot of concern in the cryptocurrency market and prompted the network to take risks to maintain position.
Celsius Stakes Some Wrapped Bitcoin
According to Wu Blockchain, a Celsius-affiliated address has borrowed $278 million worth of DAI tokens in the maker protocol. It has staked 17,919.37 Wrapped Bitcoin (WBTC). This is the protocol’s largest personal debt position. As previously stated, if Bitcoin (BTC) prices fall below $22,584, this position will be liquidated.
In the last 24 hours, bitcoin prices have dropped by roughly 15%. At the time of publication, BTC was trading at an average price of $23.350. The Celsius token, which led the crisis, has dropped by 50% trading at $0.155 in the last 24 hours.
Celsius has added another 2000 WBTC collateral to the same protocol, according to Peck Shield. If BTC prices fall below $18,387, this position will be liquidated. The total collateral now exceeds $517.2 million with 21, 960.85 WBTC. The wallet can withdraw 4.81K wrapped Bitcoin at the moment. While the collateralization ratio is 185%. However, WBTC’s 24-hour trading volume has increased by over $833.4 million.
Nexo Offers to buy collateralized loan receivables
Previously, Celsius was reported to have transferred over 3,500 WBTC tokens (worth approximately $89 million) to FTX. It also sent about $50,000 worth of Ethereum to the same exchange. Celsius has moved roughly 104,000 Ethereum (ETH) and 9.5k WBTC to FTX in the last three days, according to the report. In the last 24 hours, the price of Ethereum has plummeted by more than 20%. At the time of writing, it was selling at an average price of $1,191.
Celsius had previously said that all withdrawals, swaps, and exchanges over its protocol will be halted. It was stated that they were acting in the best interests of their community. Nexo, a competitor, responded by offering to buy Celsius’s outstanding collateralized loan receivables.
