Is the Speculation That Celsius Owes $278M in DAI to Maker Protocol True?

Vignesh Karunanidhi
Is the Speculation That Celsius Owes $278M in DAI to Maker Protocol True?
Source: Crypto Newz

Speculations around Celsius are rising as an address speculated to belong to it borrowed $278 in DAI from Maker Protocol.

The address (0x87A67e7dC32fdc79853D780c6f516312b4A503B5) supposedly belonging to Celsius, staked 17,919.37 WBTC to borrow $278 million in DAI. This staking position that marks a liquidation when BTC hits $22,584 makes it one of the largest individual debt positions in the entire protocol.

According to the Twitter user, the position will face liquidation if bitcoin hits that price. At the time of writing, Bitcoin was trading at $22,916.31, a 17% drop in the last 24 hours. The market is witnessing one of the most brutal bear markets, with over $500,000,000 liquidated in the crypto market during the previous 24 hours.

Celsius halts trading, withdrawals, and swaps

The prominent crypto-staking platform, Celsius, seems to be facing a lot of backlash as the platform halted withdrawals, snaps, and trading today. The platform expressed that the decision was followed by extreme market conditions and the bear market.

“We are working with a singular focus: to protect and preserve assets to meet our obligations to customers. Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays.”

The decision was followed by fear among the investors, as the community feared that Celsius might end up in the same situation as LUNA. The celsius token has dropped by 48% and is trading at $0.2252 at the time of writing.

Furthermore, according to speculation, the corporation unstaked $247 million in Wrapped Bitcoin from AAVE and transmitted it to the FTX exchange.

On social media, rumors abound that Celsius has been moving massive sums of WBTC, Ethereum, and other cryptocurrencies while also halting user withdrawals. In concluding the overall claims, Celsius has been accused of liquidating over $320 million to the FTX exchange.

As the speculations are rising, it’s in the best interest that investors are cautioned to stay away from CEL. The dip you seek to buy might not be the dip. Celsius seems to be extremely volatile at the moment and can head in any direction unpredictably. So stay safe with your funds and let the market play its game.