{"id":31792,"date":"2022-07-08T04:28:39","date_gmt":"2022-07-08T08:28:39","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=31792"},"modified":"2022-07-08T04:28:43","modified_gmt":"2022-07-08T08:28:43","slug":"celsius-transfers-wbtc-worth-529m-to-ftx-exchange","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/celsius-transfers-wbtc-worth-529m-to-ftx-exchange\/","title":{"rendered":"Celsius transfers WBTC worth $529M to FTX exchange"},"content":{"rendered":"\n

The cryptocurrency industry is worried that the transfer of the wBTC might result in the dump of more than $500 million worth of Bitcoin.<\/h4>\n\n\n\n
\"Celsius
Celsius transfers WBTC worth $529M to FTX exchange<\/figcaption><\/figure>\n\n\n\n

Concerns have been raised by some in the community regarding the possibility of a dump when troubled loan provider Celsius transferred nearly 25,000 Wrapped Bitcoin (wBTC)<\/a> valued at $528.9 million to cryptocurrency exchange FTX.<\/p>\n\n\n\n

The significant payment to the exchange was made after the lending platform cleared the remaining $41.2 million in Maker (MKR) protocol debt, freeing up all of the wBTC collateral for its loan.<\/p>\n\n\n\n

The community is confused about how to interpret the transfer, with some people worrying that a dump of wBTC on the exchange may soon occur, driving down the price of Bitcoin.<\/p>\n\n\n\n

Others have expressed greater optimism that the action may be a prelude to Celsius exchanging their wrapped Bitcoin for BTC\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, which may be encouraging for depositors who have been anticipating the return of Bitcoin withdrawals on the Celsius platform. Bitcoin has increased by 8% in the last day to trade above $22,100, indicating that market participants are ignoring the news.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/Colwellinvestor\/status\/1545078282629984256\n<\/div><\/figure>\n\n\n\n

Following today's news that 150,000 BTC could potentially be released into the market as Mt.Gox creditors finally receive their BTC after an eight-year wait, 25,000 wBTC were delivered to FTX<\/a>.<\/p>\n\n\n\n

As of now, neither Celsius nor its CEO Alex Mashinsky has made any radio announcements on the transit of funds.<\/p>\n\n\n\n

According to cryptocurrency attorney Joni Pirovich, Principal of Blockchain & Digital Assets, Celsius' settlement of its loan position with Maker will ultimately benefit its clients.<\/p>\n\n\n\n

\u201cMaker protocol relies on overcollateralized loan positions, so the loan repayment of US$41 million worth of DAI released 21,962 WBTC of capital which is now available to meet customer withdrawal requests.\u201d<\/p><\/blockquote>\n\n\n\n

Even if Celsius<\/a> decides to file for bankruptcy, Pirovich continued, consumers' circumstances can be improved by repaying the loan and removing the collateral.<\/p>\n\n\n\n

\u201cThe question is what will Celsius do with the withdrawn collateral? Keep it in reserve for customers or risk it to trade and on-lend.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The cryptocurrency industry is worried that the transfer of the wBTC might result in the dump of more than $500 million worth of Bitcoin. Concerns have been raised by some in the community regarding the possibility of a dump when troubled loan provider Celsius transferred nearly 25,000 Wrapped Bitcoin (wBTC) valued at $528.9 million to […]<\/p>\n","protected":false},"author":38,"featured_media":31796,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[896,4261,10916],"class_list":["post-31792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-celsius","tag-ftx-exchange","tag-wbtc-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/07\/WBTC.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=31792"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/31796"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=31792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=31792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=31792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}