The team behind Celsius is continuously working to fix the problem of decreasing liquidity.
Celsius is a crypto lending platform, it provides traditional banking-like services but for crypto users, where people can easily take and give loans easily on behalf of holding digital assets on the platform. In the last month, the crypto market saw a huge outflow of funds and that resulted in the collapse of many crypto companies.
Recently Celsius published a blog and shared about its struggles and ideas on which the team is working to fix the issue of low liquidity, to resume the operations of the platform smoothly.
Through the blog post, Celsius stated that the team is investigating to figure out the best possible ways to get out of the problem to “preserve and protect assets.”
“Across Celsius today we are focused and working as quickly as we can to stabilize liquidity and operations, to be positioned to share more information with the community.”
As per the statement made by Celsius, these best possible steps might be to consider “pursuing strategic transactions” and “restructuring its liabilities,” among other possible options.
The lender company also stated:
“These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.”
Speculation on steps of Celsius
When, On 12 July, Celsius announced that it halted withdrawal from the platform, to sustain the liquidity under the extreme market situation. Later panic forced the speculators to speculate negative things about Celsius. The majority of the speculations claimed that the platform will halt the withdrawal for the long term.
No doubt that Celsius is really in a critical situation but speculations are imposing more negative situations and further such things are creating fear. As a result of the fear, customers are trying to withdraw funds.
At present, BlockFi, and Three Arrow Capital-like platforms are in a critical situation.