Saturday, September 23, 2023

FTX on Receiving Millions from Crypto

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Celsius may be coping with its apparent liquidity problem by removing the $247 million amount of Wrapped Bitcoin from Aave and moving it to the FTX market.

The crypto world is abuzz with conjecture after the project relocates huge quantities of WBTC, ETH, as well as other crypto assets while also suspending withdrawals for consumers.

After the failure of the Anchor Protocol, which is now the Terra Classic blockchain, Celsius users condemn the website for how they feel the project mishandles its cash. With the latest measures to stabilize liquidity, the project may be resolving such issues.

Some believe that if Celsius flops, it will sell a considerable amount of ETH, causing it to depeg significantly from ETH. The Lido DeFi financing platform provides the stETH token as proof that a customer stakes ETH. It is now selling at a 4.4 percent discount to ETH.

The transfer of strange tokes from Celsius’s primary DeFi wallet begins at 18:00 ET on June 12. This is when they start withdrawing WBTC from the Aave staking and borrowing network. In addition, Celsius uses this to earn interest in its inputs. They purchase a total of 9,500 WBTC coins, totaling about $247 million from Aave. They deliver every token to the FTX market in a string of transactions for an unclear purpose.

Such conduct reflects badly on Celsius’s openness until it explains the movements. Thus, the company may be attempting to guarantee its liquidity remains stable by substituting many of the volatile cash it took from Aave with stablecoins.

Cryptos Transferred is Still Uncertain

Celsius commits 204 million USDC stablecoins on Aave beginning June 12. They also invest 10M USDC as well as approximately 8.2 million DAI stablecoins into Compound. This is another DeFi staking and borrowing marketplace.

The cumulative 222 million stablecoins coming from Celsius is nearly equal to the amount of WBTC coins they eliminate. However, it still falls short of the overall worth of WBTC and ETH. The Celsius group’s plans for the cryptocurrencies that they relocate remain unknown. It is possible that it would sell the commodities that they give to FTX.  However, another alternative is that it will stake the coins it is providing to the marketplace in order to earn returns.

Celsius was able to transfer 9,500 WBTC, 54,749 ETH, 375,343 FTT that is worth $10 million, 2,455 MATIC, 260,000 UNI, 2 million Pax Dollars, as well as 300,000 TrueUSD stablecoins to FTX as of the time of this post. Consequently, token trades continue until 23:00 ET.

Celsius CEO Alex Mashinsky passes the blame for the platform’s difficulties, including reports of collapse, to mysterious Wall Street grifters. The latest wave of FUD from Celsius generally disappoints cryptocurrency investors. Over the last 24 hours, the overall crypto market’s worth falls 7.6% to $1.07 trillion. CEL, Celsius’s own coin, plummets more than 60% in the last 12 hours to $0.15. 

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Louis Honsa
Louis Honsahttps://www.cryptoconstellation.com/
Louis Honsa is an independent writer for Cryptoconstellation. He is a data analyst and trades NFT’s too. Louis enjoys cycling and working out in his free time.
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