This sparked fear even in those with no funds held by Celsius – with $8 billion lent out and another $12 billion in assets, if they failed, the effects would be felt throughout the entire market.
However – it now appears Celsius has avoided catastrophe and will be among crypto winter’s survivors…
Celsius had invested customer funds in many decentralized finance (DeFi) protocols, including Compound, Aave, and MakerDAO.
At the pinnacle of the company’s turmoil, Bitcoin would need to drop to about $9,000 for the company’s collateral to be fully depleted, triggering the liquidation of its assets.
After spending the last three days settling over $140 million in outstanding loans with MakerDAO, the risk level has been reduced by nearly half. Bitcoin’s price would need to drop to $4,996 for Celsius to face liquidation.
No technical analysis method predicts a low price; thus, Celsius appears to officially be in the clear.
Celsius continues to take steps in the right direction…
Customers of Celsius are sharing a sense of comfort upon hearing this latest news. Since June 13, they have been unable to withdraw their cash or move funds to other accounts due to the company’s liquidity crisis.
As seen inspecting one of Celsius’ Ethereum addresses on a block explorer, they are also transferring funds to other DeFi platforms with commitments, such as Compound and Aave.
At least currently, it appears Celsius is genuinely striving to restore services to its customers and return to regular operations as soon as possible.