- Celsius, a leading crypto loan platform, is now experiencing liquidity challenges.
- The corporation has maintained that it is in excellent health despite the market slump.
Tether has informed investors and members of its community that Celsius Network’s recent loan liquidation has no detrimental effect on its reserves. According to the statement, the firm is committed to maintaining the integrity of its reserves at all costs to preserve investors’ money.
Tiny Portion of Total Equity
The corporation insisted that this concept was never compromised throughout the investment in Celsius. It was emphasized again that the company’s stake in Celsius is a tiny portion of total equity.
According to the claim:
“There is no correlation between this investment and Tether’s own reserves or stability. The Tether loan that was taken out by Celsius was an overcollateralized loan denominated in BTC (130%+), and the decision to liquidate the collateral to cover the loan was a part of the original terms of the agreement.”
In addition, according to Tether’s statement, the company has built risk assessment methods that enable it to examine its financial choices appropriately. Celsius, a leading crypto lending platform, is now experiencing liquidity challenges. As a last resort, the corporation has started reimbursing its debts and selling a large number of assets.
It was also stated in a tweet by Paolo Ardoino, the company’s Chief Technical Officer, that the procedure was meant to have minimal effects on the market.
“This process was carried out in a way to minimise as much as possible any impact on the markets and in fact, once the loan was covered, Tether returned the remaining part to Celsius as per its agreement.”
Tether’s stake in Celsius and the size of its reserve have come under increased scrutiny from the crypto community. On the other hand, the corporation has maintained that it is in excellent health despite the market slump.
Recommended For You: