Celsius has been at the center of most crypto controversies over the past month. The lending platform had to pause payments, transfers and exchanges on its platform, citing extreme market conditions, but that was only the beginning of its problems. However, Celsius seems to be taking it on the chin as contrary to what others have done, the platform has taken steps to pay off its debts and has now lowered its liquidation by over 200%.
Celsius pays $120 million in loans
The beginning of the week came with good news for credit platform Celsius, which managed to invest more money in its loans. Previously, the company added 7,000 BTC which reduced its liquidation price to $16,582, but remained at risk given the volatile nature of bitcoin. Because of this, the company continued to add to its position to lower the liquidation price in order to save the platform.
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Over the weekend, it was announced that Celsius had once again improved its position, and in a series of repayments since July 1, the lending platform has paid a cumulative $142.8 million. The most recent of these payments was the most notable with the platform paying $64 million in DAI stablecoin for its loans. This payout came hours after another significant payout of $50 million in DAI stablecoins.
As it stands, Celsius has managed to lower its liquidation price to $4,967, a more comfortable point for the lending protocol and its users who are still hoping to get back their coins that are now stuck on the platform. Celsius’ outstanding loans now stand at $82 million with an over-guarantee 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 reach out to users on whether they will get back their funds stuck on the platform. A good portion of the market considers these coins lost, but with Celsius’ multiple loan repayments, it still raises hope in the hearts of investors that one day they will be able to withdraw funds again.
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Users reported that the lending protocol continued to pay out rewards for their holdings even though they were unable to withdraw. Its parent token, CEL, saw a significant rally after suffering a horrendous loss following the announcement of a blocked withdrawal.
His last communication with the public was through a Medium fast where the platform announced that it continues to work on stabilizing liquidity and restoring operations. The blog post did not include information on when withdrawal options would return. However, it said it continues to “take important steps to preserve and protect assets and explore the options available to us.”
Featured image from Reuters, chart from TradingView.com
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