Celsius Transmits $72 Million Worth Of ETH To Wallet For “Dump”

In order to send money to centralized exchanges, which were afterwards sold on the open market, the cryptocurrency lender Celsius has transferred 67,000 Ethereum to the wallet that was previously used for that purpose. Celsius transferred 30,000 and 37,000 ETH from the Aave and Compound platforms, respectively, before the transaction to “sell wallets.”

The company’s first actions in three weeks to lower the collateral in positions held on platforms were withdrawals from Ave and Compound. For its Aave stake, the lender had previously paid off $50 million in debt, raising its health factor to 2.77.

Unfortunately, it’s possible that Celsius’ withdrawal was made with the intention of realizing those money on the spot cryptocurrency market, which puts direct pressure on the assets the seller is dumping. Large sellers and purchasers utilize OTC agreements to open or close their relatively large positions without worrying about liquidity and market volatility when there is unwelcome volatility on the market.

In the past, the corporation has hardly ever used the OTC market to realize funds. Instead, it has virtually always sold its assets on the spot market as soon as possible, sometimes even without engaging market makers.

Celsius is seeking for methods to survive

After the bitcoin market crashed and the business was unable to pay its debts, Celsius began exploring for options to survive, including “pursuing strategic transactions” and “restructuring its liabilities.”

The corporation made loans to counterparties who they have likely recalled in order to pay off their overcollateralized debts. Fortunately, all indications point to the company’s genuine efforts to recoup some of their losses and close as many loans as possible.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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