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More problems for the Celsius platform… How will this affect investors?

More problems for the Celsius platform… How will this affect investors?

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Answer More problems for the Celsius platform… How will this affect investors?

Celsius Network LLC – a cryptocurrency lender that is, according to some analyzes, small steps away from bankruptcy – is fighting its own financial battles, according to a Wall Street Journal report, which indicated that the loan company, Celsius, may not get any funding. One of its biggest investors.

Celsius Series B funding:

Quebec giant pension fund Caisse de dépôt et placement du Québec (CDPQ) and American Investment Firm Westcap Group jointly led a $400 million Series B funding program for Celsius Network in October last year.

The fund was later expanded to $750 million.

Upon completion of Series B, Celsius was valued at $3.25 billion.

Read:Everything you need to know about the upcoming Bitcoin Cash (BCH) split

Despite this, reports from parties familiar with the matter indicated that no more funding is expected from these investors, meaning that there will be no attempts to save the cryptocurrency lending company Celsius from drowning.

One of the sources pointed out that there is a sense of risk more than expected as the main reason for the retreat of investors, which is of course completely understandable given the state and position of the company and how it is dealing with the current crisis.

Celsius is struggling to survive:

Celsius Network has been struggling for a while, even though it got around it and didn’t acknowledge the threats.

a few days ago, stopped The platform processes withdrawals, swaps and transfers directly between accounts due to current market conditions.

The company stated that the decision was intended to put it in a better position to meet its withdrawal obligations.

Tracking the company’s collateral center reveals a 195% collateral ratio with a $545 million loan from WBTC.

Currently, the price of liquidation of the company’s positions has reached 16,852 dollars for the price of one bitcoin.

Read:Bitcoin price soars after $250 million digitally added to market by Tether

So in the event that Bitcoin drops to this value, the company’s position will be liquidated and of course, in the absence of more collateral, Celsius will be in a dilemma that could have a significant impact on the cryptocurrency market, due in large part to the scope covered by the company in the crypto space, by being one of the largest lenders in the market.

The company owns about 151,534 bitcoins that would spark panic within the crypto space if liquidation occurs.

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