Since July 1, the Celsius Network has repaid more than $142 million in MakerDAO loans, rapidly slashing its Bitcoin liquidation price from over five figures to less than $5,000. On July 4, the firm returned $114 million to the protocol.
It has been slightly more than three weeks since Celsius Network announced it will "pause" all withdrawals. The lender declared on June 13 that "extreme market conditions" had prompted the move and that it aimed to be "in a stronger position to honor... its withdrawal obligations" in the future.
According to crypto researcher Plan C, the company has paid off additional debts to Aave and Compound totaling $67 million on July 2 in conjunction with its MakerDAO payments.
The increase in financial activity has already whipped Crypto Twitter into a frenzy, although there are major differences of opinion regarding its significance.
Since then, the plot has taken a number of unexpected twists and turns, with Nexo and then FTX proposing to save the corporation. After allegedly discovering a $2 billion black hole in the company's finances, FTX reportedly walked away from all deals.
Celsius quickly retained Citigroup and Akin Gump Strauss Hauer & Feld LLP to assist it in reorganizing its finances as the lender works to avoid bankruptcy.
A week after Celsius halted withdrawals, Bancor halted its temporary loss protection. Bancor's Head of Market Research, Mark Richardson, made it quite clear that another protocol was seeking to destabilize Bancor and short its tokens.
Richardson disclosed the predatory technique to be Celsius in an AMA.
Simon Dixon of BnkToTheFuture suggested that Celsius may be rescued in a manner similar to Bitfinex in 2016.
Even as Dixon continues to seek support for his concept, it is unclear whether Celsius is interested in interacting with him. Dixon, a shareholder, feels he has enough votes to compel a board meeting.
In the month of July, Celsius has experienced two noteworthy changes. First, they laid off 150 employees. The company then began repaying outstanding loans.
As the activity is readily apparent on-chain, the cryptocurrency community has been quick to speculate about what is occurring.
As the crypto community awoke to the most recent event in the Celsius tragedy, there are definitely people who believe that loan repayment is a positive thing. Others have adopted a more cautious posture.
Ran NeuNer is one of those emphasizing the positives. The influencer said that Celsius is "vigorously repaying the loan and decreasing the liquidation price."
