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Celsius Network Threat at $14K to Liquidate 24,000 BTC!

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idiosyncratic1
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Celsius Network is in trouble. No doubt that it is one of the devastating things that we have experienced in 2022. So far the market has slowly been recovering from the side effects of LUNA crisis and another threat on the market would be the last thing that we would like to witness.

Unfortunately, stETH FUD hit Celsius terribly hard. Spotting the weakness of Celsius Network, by holding a bunch of stETH, the smart money hunted them as it happened in USDN, UST, DEI and, now, stETH.

Alameda Research , ThreeArrow Capital and some other actors are accused of manipulating the market conditions over crisis on Celsius Network. When Celsius could not cope with the attacks by financial hunters, the platform chose to let the FUD grow while they keep holding the investors' money.

Celsius becomes the Main Concern

Celsius is working on sustaining its debt and loan by borrowing money from other lending and market maker projects. As of writing, Celsius has a vault on Maker Protocol that has locked 24k BTC as collateral.

According to Cointelegraph Nexo, another Crypto Banking platform, offers Celsius to cover its debt by owning the company. On the other hand, WinterMute, Market Maker company, is said to give a hand Celsius to save it from the liquidation risk.

It looks like the giants of crypto service providers do not want to experience a worse case by watching the collapse of Celsius. Of course, it is not because they are guarding angels but because they know that it would directly affect their operations and the credibility of their platforms in the long run.

So far So good, Eyes on Oasis App!

The platform could lower the liquidation price from above 20K to 17K, then 15K and finally 14K by borrowing from the others and adding more WBTC to the open position.

If you want to track the current situation of the vault, you can check Oasis. app to see up-to-date numbers. In case BTC drops 33% more, we may see 24K BTC get liquidated in minutes.

Obviously, Celsius will be Saved

If we talk about USDD drama (which is likely to happen soon), no one cares about Tron or USDD. However, this time we are talking about something bigger and more dangerous in terms of the crypto ecosystem.

  • If USDD collapses, no harm will be taken but for Tron.
  • If Celsius collapses, about 24k BTC will be liquidated! (Domino impact?)

The catastrophe in Celsius will eventually hit CEXs, Crypto Banks, and, for sure, retail investors. I do not believe it would be favored by any group of crypto investors and it will be prevented even if Celsius is forced to take a huge amount of loan for that.

Posted Using LeoFinance Beta