Celsius has been at the center of most crypto controversies over the past month. The lending platform had to halt withdrawals, transfers and swaps on its platform, citing extreme market conditions, but this was only the beginning of its troubles. However, Celsius is taking it on the chin because unlike what others have done, the platform has taken steps to pay off its debt and has now reduced its liquidation value by more than 200%.
Celsius Pays Off $120 Million in Debt
The start of the week brought good news for the Celsius lending platform, which was able to put more money towards its loans. Previously, the company had added 7,000 BTC, which brought its liquidation price down to $16,582, but remained at risk given the volatile nature of bitcoin. This is the reason why the company continues to add to its position to reduce the liquidation price in order to save the platform.
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Over the weekend, it was reported that Celsius had increased its position once again, and that the lending platform has paid out a cumulative $142.8 million in a series of repayments since July 1. The most prominent of these was the latest payment, in which the platform paid out $64 million in the DAI stablecoin for its loans. This payment came hours after another significant repayment of $50 million in DAI stablecoins.
As it stands, Celsius has managed to reduce its liquidation price to $4,967, a more comfortable point for the lending protocol and its users who are still hoping to get their coins back. Now stuck on the stage. Celsius’ outstanding debt now stands at $82 million with an overcollateralization ratio of over 577%.
CEL token trading at $0.89 | Source: CELUSD on TradingView.com
Will users get their coins back?
Celsius has yet to address users whether they will get their funds back which are stuck back on the platform. There is a fair portion of the market that has lost these coins, but with Celsius’ multiple loan repayments, it sparks hope in the hearts of investors that they will one day be able to get the assets back again.
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Users have reported that the lending protocol continues to award rewards on their holdings despite not being able to lend. Its parent token, CEL, had seen a significant run-up after suffering a terrible loss following the announcement of the blocked withdrawal.
Its last interaction with the public was via a Medium post, where the platform announced that it continues to work towards stabilizing liquidity and restoring operations. The blog post did not have information on when it would restore withdrawal options. However, it said it “continues to take significant steps to preserve and protect the assets and to explore the options available to us.”
Featured image from Reuters, chart from TradingView.com
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