Celsius Lending Platform Pauses Withdrawals, Transfers, and Swaps
The lending platform, which was at the center of many crypto controversies in the last month, had to pause withdrawals, transfers and swaps following several incidents involving Celsius.
In the last month, Celsius has been at the center of most crypto controversies. The lending platform had to pause withdrawals, transfers, and swaps on its platform due to extreme market conditions, but that was not the end of its troubles. However, contrary to what others have done, Celsius has made moves to pay down its debts and now has reduced its liquidation price by more than 200%.
Celsius Repays $120 Million in Loans
The start of the week came with good news for the Celsius lending platform, which had been able to put more money towards its loans. Earlier, the company had added 7,000 BTC that brought its liquidation price down to $16,582 but remained at risk because bitcoin is volatile. That's why the company has continued to add to its position in order beat down the liquidation price and save the platform.
According to a recent report, Celsius has increased its holdings once again. The lending platform has made several repayments since July 1st, and the latest of these payments was the largest: $64 million in DAI stablecoin. This repayment came just hours after another large repayment of $50 million in DAI stablecoin.
As it stands, Celsius has managed to reduce its liquidation price to $4,967. That's a more comfortable figure for the lending protocol and its users who are still waiting for their coins stuck on the platform. Celsius's outstanding loans are now worth $82 million with an overcollaterization ratio of over 577%.
How can we be sure that the users will get their coins back?
Celsius has not yet announced whether it will return funds to users that are stuck on the platform. The market is split in its opinion about these coins, with a majority considering them lost while others still have faith that they will be able to withdraw assets again.
Despite the fact that users are not able to withdraw, they have reported that the lending protocol continues to pay rewards on their holdings. The native token, CEL, saw a significant rise after suffering a huge loss following the announcement of blocked withdrawals.
Its last communication with the public was through a Medium post where the platform announced that it is working to stabilize liquidity and restore operations. The blog post did not contain information about when it will be restoring withdrawal options. However, it did state that "we continue to take important steps to preserve and protect assets and explore options available to us."
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