Celsius pays back $10 million
Celsius has sent $10 Million worth of DAI stablecoins (or more) to Compound Finance. Compound Finance is a popular interest-yielding DeFi company.
According to the Etherscan block explorer, the company repaid 10,000,000 DAI and also collected 166 COMP ($5,200). Celsius made several other payments over the last week. It paid $53.6 million DAI in a series transactions to its vault with Oasis Protocol. This is another yield-bearing DeFi platform.
Celsius uses various DeFi protocols in order to generate interest for its clients. It is likely that the latest $10 million payment means it is closing positions in those services to regain liquidity. Customers can also re-open withdrawals. Though this is likely a step toward solvency, today’s $10 million payment only makes up a small fraction of Celsius’ activity.
For example, inflows to the company were $397 million and outflows were $1 billion for the week of May 6. If demand continues to be high, the firm might not be able to withdraw funds.
Celsius: Sunday Update
Celsius services were suspended one week ago. Since June 13, Celsius has disabled withdrawals, transactions, swaps, and other services. In fact, today’s transaction comes shortly after Celsius posted an update and confirmed that the suspension will continue.
“Our objective continues to be stabilizing our liquidity and operations,” the firm wrote on June 19. It added that this “will take time” and that it will “continue to work around the clock.”
Celsius also stated that it will cooperate fully with regulators and officials. Four American states’ regulators began investigating the situation last week.
Celsius added that it would pause Twitter spaces and AMAs in order to prioritize the resolution of the current situation.
CEL prices are rising
Celsius’ decision to suspend transactions caused panic in the crypto market as Bitcoin prices dropped dramatically. BTC’s price started at $28,000 on June 12, but dropped to $18,000 over the course of the week. BTC is currently valued at $At the time of writing, 20,500
Investors appear to be growing increasingly dissatisfied with Celsius’ course of action. Social media users attempt to organize a short squeeze to artificially drive up prices and to profit from any short-term advantage.
Indeed, the value of Celsius’ native token has risen since the firm announced it would freeze funds. CEL fell from $0.44 to $0.15 in June 12th. It is now worth $0.94
This recovery seems to be largely due the short squeeze. But, Celsius could be able to reopen service, which could help the asset regain its legal value.