TETHER IS A TICKING TIME BOMB!! FTX IS LIGHTING THE FUSE!!!
, The over extended over speculative house of cards. Crypto companies are starting to fall.. If Celsius is next.who will be the next domino to fall And will that domino obliterate, the crypto markets? Well find out in about ten minutesbecause its time for Chico Crypto. Everyone should know about Celsius. As of nowits the talk of the town. So whats. The basic breakdown of this Celsius fiasco Well. Celsius is facing a liquidity crisis, one in which the spiraling down market prices make it harder and harder for them to match their liabilities, aka customer deposits with the assets they hold.. Now there is an estimated 10 billion dollars worth of liabilities, aka customer deposits on Celsius and according to research of Celsius wallets, there is only just over 1.4 billion held by Celsius in their on chain wallets.. That is a big discrepancy and, with the news of insolvency coming, outthe platform would go under as customers flee from the platform.. That is why they halted all withdrawals.. So where is the money? Well like dominoes? Falling Tera Lunas collapse is contributing to Celsiuss problems. According to Nansen, an onchain research company and their article On Chain, Forensics Demystifying, TerraUSD De peg Celsius was one of the 7 whale wallets who contributed to the depeg of UST.. They had up to 500 million in customer funds playing around with UST Luna and Anchorthey were able to get some out during the collapsebut, not all of it.. What else is there Theres about 400m of customers, ETHER staked on the Ethereum Beacon, chainwhich cant be withdrawn until the 6 12 months after the merge.
Theyve been taking customers ETH and staking it with Lido to receive stETH, which theyve been earning higher yields. Withwhich worked out in a bull market, but not in a bear. Celsius counts on stETH holding its ratio at 1 to 1 because it needs to match liabilities.But with a liquidity crisis and bear market. The stETHETH ratio has begun to slide and liquidity is running out. Fast. And then there is this. There. Wbtc vault on the MakerDAO protocol. Theyve been turning customers Bitcoin into wrapped Bitcoin and using Maker to get DAI loans. 2 days ago Celsius. They had nearly 18k WBTC leveraged in Maker.. The position faced liquidation at 22584BTC.. There was a 278 mil DAI debt, making it the largest individual debt position on the protocol.. Well, they keep topping off this and fighting the liquidation., As we can see they added basically 7000 more wBTC as collateral, which brought down the liquidation price to just over 15000 dollars. Bitcoin price.. These positions Celsius are in are often hunted by institutional trading. Desks.Firms will actively try to push price down to get these big positions. Liquidated then make money on the trade when the forced liquidation goes through. Sooo, who is the culprit? Well, according to Ethereum World News, its SBF Sam Bankman Frieds, Alameda research., They have an article that says: Alameda Researchs Recent Alleged stETH Selloff Puts Celsius Network in Trouble and the article states Alameda Research recently redeemed 50000 stETH for ETH and the worries are.
This will affect the stETHETH peg.. They are messing with stETH and the ETH peg drying up the liquidity and forcing Celsiuss handand many people theorize. They are also trying to liquidate their wBTC maker position by actively shorting and dumping. Bitcoin. Soo Terra Luna goes down, which is the domino that begins the Celsius fall.like I mentioned in the beginning, who could be next Celsiuss demise would be the push to begin the fall of who? What about Tether USDT? So if you didnt know Tether is an investor in Celsius. From Celsiuss own filings we can see. Tether is in position 2 and 3 as the top shareholderbesides Celsius themselves.. They are heavy into Celsius. Sooo. The Tether reserves.what is backing USDT Well Tether, put out an attestation. Just last month, not a full audit, but just an attestationas. We can see from the document they had just over 4 billion in cash on handbut. Then, if you look below they had over 3.1 billion in secured loans and over 5 billion in other investmentsaka digital tokens. Tether had more loan and digital tokens on their balance sheet, then cash on hand for redemptions.and. As we know, redemptions have been going wild lately once the Luna fiasco, began11 billion redeemed from May 10th to May 27th and just yesterdayanother billion was redeemed.. Can Tether survive more redemptions? Now Tether obviously has a share of Celsius tokens. They are the 2nd largest shareholderso part of that 5 billion investment in digital tokens is Celsiusbut.
What about in loans? Well, in October of last year, Bloomberg put out the article Anyone Seen Tethers Billions and the article states After I returned to the U.S.. I obtained a document showing a detailed account of Tether Holdings reserves.. It said they include billions of dollars of short term loans to large Chinese companiessomething money market funds avoid.. I also learned that Tether had made loans worth billions of dollars to other crypto companies with Bitcoin. As collateral., One of them is Celsius Network Ltd., a giant quasi bank for cryptocurrency investors, Sooo Tether needs Celsius to survive or mass redemptions that they may not be able to meet would come flowing inas some of the collateral backing the reserves is from Celsius themselves. Now, Im sure you saw what happened to Celsius yesterdaya, big ole pump and dumper Celsius went from about 33 cents to a peak of 1.42 cents. Before crashing back down What the hell happened and who was behind it. Well, a king fisher on Twitter broke it down.. They said SBFFTX. The risk engine messed up. Badly. UX was down most traders unable to hedge close or reduce their positions.. The risk engine blocking traders., A bitmex style people deserve refund thats, not how exchanges are supposed to protect their customers.. Spot market went above 2 to break index and trigger liquidations on purpose. Thats, a spot manipulation to liquidate traders., FTX, SBF and most likely Alamedanow. Why would they be pulling off this manipulation? This hunting to take Celsius down if FTX, is a part of the Tether Cartel? Well, they may be trying to break free and take the crypto markets for themselves.
January of 2021, SBF replied to a thread from Dan Held which dove into the Tether FUD and why he thinks it. Overblownsbf said this USDT very liquid on exchanges, moderately liquid for creationsredemptions, Messy and imperfect, but works claims that its 95 backed are totally unfounded, not to say its only 95. If there were issues with USDTUSDC, it would be bad, but crypto would survive Now for one. He says Tether is only moderately liquid for redemptions., Meaning that if a cascade of redemptions came, they wouldnt be able to fulfill all of them.. But then he says: If there were issues with USDTUSDC, it would be bad, but crypto would survive. Now. This thread was fully about Tether USDTwhy. Would he bring USDC up Well because he was getting deeply involved with USDC.last year May of 2021 Circle, the company behind USDC announced they were extending their partnership with FTX to go global And then just a few weeks after this Circle announced they raised 440 million dollars And frp the list of investors.one of them was none other than.FTX, So Celsius is being hunted by FTX and Alameda. Tether does not need Celsius to go under, or else it could cause. Mass redemptionsFTX is invested in Tethers competitor USDC. Is FTX, looking to takedown USDT. To make room for their takeover .now, some of you would say: Why would FTX do this Dont they have the same banking partner as Tether.Deltec in the bahamas. You wouldnt be incorrect.
They do Bank with Deltecbut. They have been moving away from this lately and increasingly going with an American counterpart. Silvergate.. From this bitcoin magazine, article Silvergate Bank Saw Over 14 Billion in Bitcoin Crypto Deposited in q1 2022. They say, SEN, Silver Gate Exchange Network enables real time U.S. dollar and euro settlement between counterparties, in addition to faster trading, automated funds, distribution and data analysis., Its clients include FTX Coinbase, Bitstamp Kraken and the company behind the USDC stablecoin Circle. Hmmm is all I have to Say.