- Celsius Network made a $10 million repayment to Compound Finance on June 21, while withdrawals, transfers and swaps remained disabled.
- In a recent blog post, Celsius informed the community that it will work with regulators and officials to find a resolution.
- Celsius’ CEL token price doubled; however, experts believe this is likely due to a short squeeze.
Celsius made a $10 million repayment to Compound Finance in DAI stablecoin, in an effort to shore up the network’s liquidity. Celsius has made several other repayments over the past week, closing positions with lenders, according to data from Etherscan.
Celsius network paid $10 million worth of DAI to Compound Finance
Celsius Network, one of the largest crypto lenders, made a significant payment to Compound, transferring $10 million in stablecoin DAI on June 21. The payment was made to the interest-yielding service Compound in an attempt to regain liquidity.
On May 6, the Celsius Network witnessed $397 million in inflows and $1 billion in outflows, and the firm remained unable to afford withdrawals. All withdrawals, transfers and swaps were then paused, on June 13, 2022, to enable the network to work on rebuilding its finances and tackle the crisis at hand.
Based on data from the Etherscan block explorer, the Celsius network has made a number of other repayments over the past week. In a series of transactions, Celsius paid $53.6 million DAI to Oasis Protocol; a privacy-enabled blockchain platform.
Transfer of $10 million in DAI from Celsius Network to DAI
Experts consider these moves Celsius Network’s efforts to regain liquidity and head toward solvency.
Withdrawals, swaps and transfers remain disabled on Celsius
Despite Celsius Network’s efforts, however, the lender has still paused all withdrawals, swaps and transfers. In a recent blog post, the network informed the community that the project’s objective is to stabilize liquidity and operations, and this process could take time.
Celsius Network’s priority is to maintain an open dialogue with regulators and officials and find a resolution for the liquidity crisis. The plan of action is to pause Twitter Spaces and AMAs to focus on navigating the challenges facing the Celsius Network.
The blog reads:
We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community. Acting in the interest of our community remains our priority and we will continue to work around the clock.
Celsius’ CEL token price doubled; experts suspect short squeeze
The CEL price is up 105% in the last 24 hours; however, despite the rally, the Celsius token is still 84% away from its all-time high of $8.02. Plan C, a leading analyst, announced that a crypto group had put forward a verified reward of $20 million for anyone with information on a concerted attack it was speculated Celsius Network has suffered.
Any whistleblower willing to speak & provide definitive proof that there was a planned attack on #Celsius will never have to work another day in their life.
A verified reward put forward by a respected #Crypto group of over $20M. #Bitcoin
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— Plan©️ #CELShortSqueeze (@TheRealPlanC) June 19, 2022