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Celsius to Halt Transfers - stETH & CEL Dilemma

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2 days ago we witnessed another huge drop in the crypto market that was triggered by stETH FUD. Although the peg between stETH and ETH has never been perfectly 1:1 for a long while, it was the first time that the spread exceeded around 6% for the stable pair.

While the FUD was mainly around stETH by Lido Finance, CEL token by Celsius was also affected by the growing FUD over the staked Ethereum case. It was directly related to the stETH bag held by Celsius. For "smart money", it is time for a blood bath.

For a very long while, the token has been losing its value in line with the negative sentiment in crypto and the lack of sustainable narrative in the crypto winter.

stETH FUD Hits Celsius Harsh

Do you want to see the first shot on CryptoTwitter? Here we go 👇

yieldchad on Twitter made the first move to spread the virus. Since then, any single bad thing about stETH was directly associated to the funds on Celsius. At that point, Celsius was trapped by Alameda Research!

How?

The speculations over the stETH manipulation is taking place around Alameda Research (by FTX Exchange). According to some crypto influencers, Sam by FTX is once again in action to make some projects wipe out while they are getting what they want in a bad manner.

The reason why FTX does it (as they did it to USDN on Waves) is that they ask for some funds from projects before they attack on them. If the projects to do not bend the knees, they manipulate and FUD around it. (as Sasha, by Waves, declared on Twitter)

Read my post about The Reasons Why Waves Price Dropped - Alameda Research (FTX Exchange) Case to put pieces of the puzzle together!

Also read this thread on Twitter:

SmallCapScience on Twitter explains the details in a Twitter thread.

Celsius Tries to Stop Outflow of Money

First of all, it hurts the market and their brand. Not a wise idea.

Celsius has become another victim of those who spot the weaknesses of projects (like in USDN, UST and many others) and manipulate it. Now, the sell-off for CEL token is non-stop happening due to the artificial crisis created by the big boys.

The reaction that Celsius gives is not opt for crypto ecosystem in many facets. Whatsoever happens, the halt of operation is the last thing that any crypto investor would dare to see. Thus, the inevitable mistake is already made by the team. Now they only have only 1 option available unless they decide to rug pull.

-> Watch the melting of your liquidity and value of token due to the authoritarian reaction that they performed.

Celsius in News, but not in a good way!

Some say "there is no such thing as bad advertising".
Actually, there is for crypto service providers. Reuters talks about Celsius and the red day that it brings to the crypto ecosystem because they do not let people use their money as they wish.

Zerohedge mentioned the risk that 1.7m people face as Celsius customers. All these things are not different from what media did to LUNA ecosystem.

The moment they start acting like a part of obsolete financial system, they lose credits.

After that point, nobody will be surprised if Celsius loses 90% of liquidity that that host on the platform. What would be shocking if the market does not react but, as we know very well, the market will respond it harder than before.

TL;DR

stETH and Celsius are under attack. There has always been depeg case for stETH but CryptoTwitter is spreading a FUD this time deliberately or illiterately.

First FUD over stETH and Celsius association was done a couple of days ago on Twitter. It is speculated that Celisus is running out of liquid ETH as the funds are densely on stETH on Lido Finance. Then, stETH FUD hit Celsius harsh when CryptoTwitter was manipulated by Alameda Research!

Alameda Research (by Sam of FTX) is accused of manipulating earlier USDN, UST, and now stETH. When Alameda attacks, it is too hard for crypto projects to go against such a strong enemy. Here, Celsius chose the wrong action to take so that they cay deal with Alameda. Unfortunately, the crypto market is bleeding while Celsius is faced with death in the eyes of investors.

Posted Using LeoFinance Beta