Celsius, the embattled crypto lender recently transferred a massive number of wBTC (ca. 25,000) to FTX. This transfer to the crypto exchange by Celsius is worth close to $529 million. Once information regarding this transfer hit the wires, many community members are now wondering what is next – a dump maybe?
This transfer was made after Celsius managed to pay off its pending debts to Maker protocol, to the tune of $41.2 million. This payment released all of the wBTC which was held as collateral. The reason many investors are concerned is the fear that this collateral could be dumped, resulting in BTC prices being pushed further down.
While some worry, other investors are hoping that this move may be due to Celsius’ preparation to swap the wBTC and get BTC. This may be a good thing for many depositors who have not been able to withdraw their holdings, on the Celsius network. Bitcoin prices have risen in the last day and currently worth $22,100. It looks like investors are taking this news well.
It looks like the transfer of the wBTC to FTX triggered hopes that about 150,000 BTC could be released to the market. This huge BTC release will happen as creditors of Mt. Gox will be getting theirs back after waiting for eight years. Neither Celsius’ CEO nor their representatives have made any statements about this transfer.
According to a lawyer who works in the crypto arena, Celsius’ loan repayment will most definitely help the company’s customers. Since Maker relies on loan positions with collateral, loan repayments make it easier for customers to make withdrawal requests and have these met. The only question he has is – what does Celsius plan to do with this collateral which it has withdrawn? Keep it for customers or trade it?
