Celsius' recent problems continue to spiral on with new reports claiming that former investors do not wish to pour any more funds.
Celsius’ recent problems continue to spiral on with new reports claiming that former investors do not wish to pour any more funds.
Another source also noted that current investors are either willing to wait for a Celsius acquisition or a restructure of the platform. One person familiar with the talks between Celsius and its investors said, “few are feeling OK about things. There was more risk in this than fully appreciated.” Celsius took ETH deposited by customers and staked them on the Ethereum Beacon chain via the liquid staking protocol Lido and received stETH in return. The company then deployed these new tokens on other DeFi protocols to generate yield.“Staked ETH has increasingly become decoupled from ether amid concerns over the delayed merge on Ethereum. Consequently, large holders have been dumping the coin, and this continues to dry up liquidity for any swaps from stETH back to ETH.