Celsius has been one of the biggest companies in the history of the crypto market. They were one of the most famous crypto lending platforms and had a lot of investors pouring their money into the company. However, the recent crypto market is going through a dark phase. The majority of the companies are succumbing to the pressure. A few days back, Coinbase suffered a huge setback as they prepared for thief liquidation. It seems that the same will be the case with Celsius as well. In the recent turn of events, the company has paid off a huge amount of loan that they had outstanding to Maker(MKR).
Since the start of July, the company has repaid loans amounting to $142.8 million stablecoins. These coins were distributed across four separate transactions. Despite repaying a bulk amount, the company still has an outstanding loan of $82 million. The company has been running on huge losses for quite some time. The total figures for the company’s losses amount to $667.2million. All these facts have indicated the fact that the company is probably going in the direction of insolvency shortly. Let us learn more about the story in detail below.
Celsius To Go Insolvent
Celsius is trying to repay all their existing loans in the market in order to take its liabilities count to zero. This is a clear indication of the fact that the company is heading toward getting insolvent. After the repayments were made, the liquidation value of the wBTC loan sank to $4966.99 BTC.
Celsius has been troubled by the downward market trend for a long time. They ceased all their withdrawals from the middle of the month of June. They also had a legal counsel dedicated to restructuring their company.