Crypto Staking and lending Platform Celsius Halts Withdrawals for users

Celsius has been pushing more than a quarter of a billion dollars worth of funds from Aave into the FTX exchange for causes not specified in addition to halting withdrawals for users.

Staking and lending Crypto Platform celsius

Crypto staking and lending platform Celsius may be negotiating with its gossiped liquidity crisis by unstaking $247 million worth of Wrapped Bitcoin from Aave and shipping it to the FTX exchange.

Also Read, FTX to boost fan interaction for the Mercedes F1 team with Series of NFTs

Premises among the crypto community are now unfolding as the project has been moving tremendous amounts of WBTC, ETH, and other crypto assets in addition to pausing withdrawals for users.

Celsius users have denounced the platform for how they believe the project has mishandled its funds following the collapse of the Anchor Protocol on the now-known Terra Classic blockchain. The project could be discoursing those matters with the recent moves to stabilize liquidity.

Also read, Guide on where to buy Terra 2.0

Some consider that if Celsius fails, it would trade its significant stack of staked ETH (stETH), which would compel it to depeg further from ETH. stETH is a token provisioned by the Lido DeFi lending platform that is offered as validation that a user has staked ETH. It is presently trading about 4.4% quieter than ETH.

Crypto platform Celsius’s unusual token transactions

Unusual token movements commenced at about 18:00 ET on June 12 from Celsius’s main DeFi wallet when it initiated removing WBTC from the Aave staking and lending platform, which Celsius exploited to earn interest on its deposits.

As far as we can tell, 9,500 WBTC tokens worth about $247 million have been saved from Aave. After a series of transactions, all of those tokens have been dispatched to the FTX exchange for an undisclosed reason.

In the context of WBTC, it seems that 54,749 ETH worth about $74.5 million have been shipped to FTX.

While such movement forecasts very badly for the transparency of Celsius until it exemplifies the moves, the firm may be attempting to assure its liquidity is stable by substituting many of the volatile funds like WBTC and ETH it withdrew from Aave with stablecoins.

Since June 12, Celsius has better 204 million USDC stablecoins on Aave. It also has deposited 10 million USDC and about 8.2 million DAI stablecoins to Compound. It is another DeFi staking and lending platform.

In total, 222 million stablecoins re-staked by Celsius is practically equal to the value of WBTC tokens it dismissed but still does not come close to matching the merged value of WBTC and ETH.

The Celsius team’s agendas with the cryptos that have been moved are still not evident. There is a genuine prospect that Celsius could sell the investments it sent to FTX, but another reasonable option is that it plans to stake the tokens they are sending to the exchange to accumulate profits.

At the time of writing, Celsius had sent 9,500 WBTC, 54,749 ETH, 375,343 FTT worth $10 million, 2,455 MATIC ($1,158), 260,000 UNI ($1 million), 2 million Pax Dollars (USDP), and 300,000 TrueUSD (TUSD) stablecoins to FTX exchange. But, token movements were still taking place by 23:00 ET.

Momentarily, Celsius users might be pecking their nails in apprehension because the platform halted withdrawals in order to put Celsius in a better position to honor, over time, its withdrawal obligations, as per the announcement from the project on June 13.

We are working with a singular focus: to protect and preserve assets to meet our obligations to customers – conveys celsius. 

Celsius CEO Alex Mashinsky dodged blame for the hardships facing the platform, including gossip of bankruptcy, to shady opportunists on Wall Street.

Crypto investors are broadly unimpressed with the new round of FUD coming from Celsius. The total crypto market cap has fallen 7.6% to $1.07 trillion over the past 24 hours. CEL, Celsius’s own token, has declined more than 60% over the past 12 hours to $0.15. 

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