The troubled crypto lender paid down $183 million of its debt to Maker, blockchain data shows, possibly in a bid to recover bitcoin-linked collateral that otherwise would remain trapped, sndr_krisztian reports.
The transactions resulted in not only the extinguishment of the debt but the release from Maker of 2,000 wrapped bitcoin that had been posted as collateral, the data shows. Wrapped bitcoin is a token configured for the Ethereum blockchain that represents bitcoin – the largest cryptocurrency and thus one of the most liquid.
“By repaying the debt, Celsius is possibly freeing up collateral that then can be sold on centralized exchanges or via over-the-counter to meet creditor demands and customer withdrawals,” Fundstrat analyst Walter Teng told CoinDesk. “Given that DeFi loans are overcollateralized, it makes sense for them to do this, as the value unlocked from paying back their loans is greater than the value of the loans themselves .”
Celsius representatives didn't immediately return emails requesting comment on the blockchain data or the transactions.The beleaguered crypto lender is scrambling to
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Celsius repays $120 million stablecoin debt to Maker protocolCelsius Network pulled its bitcoin liquidation price below $5,000 by repaying a total sum of $120 million to Maker today.
Read more »
Celsius repays $120 million stablecoin debt to Maker protocolCelsius Network pulled its bitcoin liquidation price below $5,000 by repaying a total sum of $120 million to Maker today.
Read more »
Little-Known Abortion Pill Maker Faces ScrutinyA little-known company that makes mifepristone, an abortion pill, is in the middle of the debate over the Supreme Court’s abortion ruling
Read more »
Today's deals: FREE Amazon credit, $10 waffle maker, $180 Roomba, Bio Bidets, moreAmazon deals of the day include free Amazon credit, a $10 waffle maker, a $180 Roomba robot vacuum, Bio Bidet deals, and more.
Read more »
China Auto Maker Geely Ventures Into SmartphonesA subsidiary of Zhejiang Geely Holding Group has acquired a 79% stake in lesser-known Chinese smartphone maker Meizu Technology, one of China’s earliest smartphone makers.
Read more »