The cryptocurrency lending protocol Celsius Network, which last week said it would halt all withdrawals and account transfers owing to volatile market conditions, has said in a new statement that it needed additional time to stabilize its financial situation. We want the people in our community to understand that maintaining the stability of our operations and liquidity is our goal. Celsius is maintaining contact with law enforcement over its decision to stop swaps, withdrawals, and transfers between user accounts.

What is Celsius?

The company Celsius Network describes itself as a bank substitute. This implies that if you save cryptocurrency at Celsius, you can loan money and earn interest much like a bank. They are a Centralized Financed Lending Provider with a focus on the community. Users receive interest on 80% of earnings. The network boasts 1.7 million subscribers, and users are said to receive over 18 percent interest yearly. Additionally, users of the network can acquire cryptocurrency at cheap interest rates starting at 0.1 percent APR. This makes it possible to loan money without paying a lot of costs. The value of the coin associated with Celsius has increased significantly since its debut, reaching an all-time high (ATH) of $8.02 on June 3, 2021, however it is now worth more than 90% less.


Celsius potential recovery strategies

  • A reorganization that uses financial engineering to innovate Celsius and let depositors to gain from a partial recovery.
  • Establish a pool where important Bitcoin whales can contribute to the community by investing in Celsius. The case finished in 2016 for Bitfinex is comparable to this proposal. Customers were able to withdraw 75% of their balance at that time thanks to investments made, and the remaining 25% could grow in value if the economy recovers.
  • Developing a strategy for operations that enables a new team and company to recover and assist depositors.

Each of the three ideas is only a range of potential outcomes that venture into the uncharted. Risks exist every day. The recovery plans, for instance, do not guarantee that investors would ultimately receive all or the majority of their money back. It’s possible that power structures will change, which would particularly impact smaller investors.

Plan of Repayment for Celsius

Last month, the cryptocurrency market fell into a bear market as a result of the suspension of withdrawals by Celsius Network. Following the repayment of the final balance owed to DeFi Protocol MakerDAO, it is currently making headlines. The final $41.2 million payment was made on July 7 in DAI. The $448 million in collateralized debt was released by Celsius as a result of this repayment. In addition, on July 8th, Celsius lowered the $258 million in loans owed to Ave and Compound. The price of CEL increased because these loan repayments suggested that Celsius might be on the mend.

celsius network

Shifting Crypto from Celsius to FTX

The troubled loan company Celsius has moved nearly 25,000 Bitcoin worth $528.9 million to FTX, raising fears among some in the community about the possibility of a dump in the near future. Following the lending platform’s payment of its remaining $41.2 million debt to the Maker protocol, which released all of its loan’s wBTC collateral, it made the sizable transfer to the exchange.

What is the company’s position?

In order to concentrate on overcoming these unprecedented hurdles and trying to uphold our obligations to our community, we are stopping our Twitter Spaces and AMAs, Celsius stated in a blog post on Monday. People were cautioned to be wary of social media accounts that claimed to be affiliated with the business. We want the people in our community to understand that maintaining the stability of our operations and liquidity is our goal. It will take time for this to happen.