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Celsius Network Cites More Distress, No Support From Its Largest Investors

The post Celsius Network Cites More Distress, No Support From Its Largest Investors appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

Celsius Network LLC, the struggling crypto lending service, is likely to tackle its financial fights alone, according to numerous sources obtained by WSJ. This is because the firm is unlikely to get funds from two of its largest investors.

Caisse de dépôt et placement du Québec (CDPQ), a Quebec-based pension scheme, and American investment firm Westcap Group together headed a $400 million Series B fundraising round for Celsius Network in October 2021. After a month, the fund was increased to $750 million.

Celsius’s valuation increased to $3.25 billion following the completion of the Series B. However, indications by industry participants who knew about the situation, indicate that fresh funding from such investors to rescue the firm from its current condition is doubtful.

According to an insider, the main reason for investors to exit is that they cited a greater danger than anticipated. This move looks logical because the firm’s current state of affairs and the ongoing issue is not in a good condition recently.

Celsius Network on A Weak Spot

Celsius Network is indeed facing an imminent economic collapse for some time now. This is threatening the whole status of the organization despite its refusal to accept it.

Owing to “extreme market circumstances,” the site temporarily halted withdrawals, swaps, and transfers between accounts just a few days ago. The business stated that the move was made to better the situation for investors to meet withdrawal commitments.

Using Oasis to monitor the firm’s collateral status indicates a 195% collateralization level with a $545 million WBTC debt. Furthermore, the liquidation price for BTC is at $16,852. If BTC falls below that level, the firm’s stake will be liquidated without any further backing.

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