Celsius Network has paid off more than $142 million in MakerDAO loans since July 1, sharply reducing its bitcoin liquidation price by five figures to less than $5,000. The company paid $114 million for the protocol on July 4.
According to crypto researcher plan cIn conjunction with the MakerDAO payments, the company paid a further debt of $67 million to Ave and Compound on July 2.
The flurry of financial activity has already propelled Crypto Twitter into a state of excitement, but there is disagreement about what this all means.
a long and frantic pause
It’s just over three weeks since Celsius Network confirmed it will ‘stop’ all withdrawals. On 13 June the lender announced that “extreme market conditions” had made the decision and that in time it expected to be “in a better position to honor … its withdrawal obligations”.
The story has taken several turns since that date, with first Nexo and then FTX offering to bail out the company. FTX is said to have walked away from any deals after reportedly finding a $2 billion Black hole in company finances.
Celsius rapidly hired Citigroup and Akin Gump Strauss Hauer & Feld LLP to help it restructure its finances as the lender seeks to find a way out of bankruptcy proceedings.
One week after Celsius suspended withdrawals, Bancor suspended its temporary loss protection. Mark Richardson, Bancor’s head of market research, was clear that the suspension was triggered by another protocol that was attempting to destabilize Bancor and short its tokens. At the AMA, Richardson revealed the hunter protocol to be Celsius.
Simon Dixon of BnkToTheFuture proposed that Celsius could be saved in the same way as Bitfinex was saved in 2016. Even as Dixon continues his efforts to build support for his plan, it is unclear that Celsius is not interested in joining him. As a shareholder, Dixon believes he has the necessary votes to force a board meeting.
Celsius has entered the month of July with two important events. First, it laid off 150 employees. Then he started repaying the outstanding loan. With the activity clearly visible on the chain, the crypto community is increasingly speculating as to what is going on.
divided opinion on Celsius
As the crypto community wakes up to the latest developments in the Celsius saga, there are those who clearly believe that repayment of loans is a good thing. There are others who have taken a more skeptical stance.
Rain lessors are among those who are emphasizing on positivity. influencer Told That Celsius is “aggressively repaying the loan and reducing the liquidation value.”
That optimistic post encouraged one user to sum up war-weary cynic Which many customers now feel.
“Pay off all your corporate debt with retail liquidity,” he replied.
While there’s no proof that the cynic is right, who at DeFi would want to stake their house if they’re wrong?