News

Tether Claims To Be Unaffiliated From Celsius

Tether insists it has liquidated Celsius’s collateral for the loan, so is unaffected by the current crisis.

Tether Claims To Be Unaffiliated From Celsius 3

In a blog post published on July 8, the company behind the largest stablecoin in the cryptocurrency market, Tether, confirmed that it is not affected by the Celsius lending platform experiencing liquidity difficulties.

Tether admitted Celsius borrowed an undisclosed amount from them but requested a Bitcoin collateral value of up to 130% of the loan. After Celsius became insolvent, Tether liquidated the entire amount of this collateral, so it was not involved.

The company further revealed that it has made an investment in Celsius shares, but the value is not large. Along with Three Arrows Capital, Celsius is recently one of two crypto organizations that are directly causing a liquidity crisis in the cryptocurrency market.

On July 7, Celsius unexpectedly returned a 224 million DAI loan to Maker, then transferred the entire amount of WBTC worth $510 million to the FTX exchange with a high probability of being sold. The motives and next moves of Celsius are still unknown.

Tether Claims To Be Unaffiliated From Celsius 4

The Tether company has also been under pressure recently from the negative news circulating in the market about the issue of escrow for USDT, causing the price of this stablecoin to fall off the $1 peg in a short time.

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.