Troubled loan provider Celsius moved roughly 25,000 Wrapped Bitcoin (wBTC) valued at $528.9 million to cryptocurrency exchange FTX. As a result, concerns have been raised by some in the community over the possibility of a dump.
The significant payment to the exchange was made when the lending platform cleared the remaining $41.2 million in Maker (MKR) protocol debt, freeing up all of the wBTC collateral for its loan.
The community is confused about how to interpret the move, with some people worrying that a dump of wBTC on the exchange may soon occur, driving down the price of Bitcoin.
Celsius moving the WBTC could be hopeful for the users
Others have expressed greater optimism that the action may be a prelude to Celsius exchanging their wrapped Bitcoin for BTC, which may be encouraging for depositors who have been anticipating the return of Bitcoin withdrawals on the Celsius platform.
Bitcoin has increased by 8% in the last day to trade above $22,100, indicating that market players are ignoring the news.
Following today’s announcement that 150,000 BTC might potentially be released into the market when Mt.Gox creditors finally receive their BTC after an eight-year wait, 25,000 wBTC were delivered to FTX.
As of now, neither Celsius nor its CEO Alex Mashinsky has made any radio announcements on the transit of cash.
According to cryptocurrency attorney Joni Pirovich, Principal of Blockchain & Digital Assets, Celsius’ settlement of its loan position with Maker would eventually benefit its clients.