TETHER IS A TICKING TIME BOMB!! FTX IS LIGHTING THE FUSE!!! - YouTube

First it was Terra Luna, now it’s currently celsius fighting to keep its head above water.

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 minutes…because it’s time for Chico Crypto!

Everyone should know about Celsius as of now…it’s the talk of the town.

So what’s 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 out…the 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 Luna’s collapse is contributing to Celsius’s 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 Anchor…they

were able to get some out during the collapse…but not all of it.

What else is there?

There's about $400m of customers ETHER staked on the Ethereum Beacon chain…which can’t

be withdrawn until the 6-12 months after the merge.

They’ve been taking customers ETH, and staking it with Lido to receive stETH, which they’ve

been earning higher yields with…which 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 $stETH/$ETH ratio has begun to slide and liquidity

is running out fast.

And then there is this.

There wBTC vault on the MakerDAO protocol.

They’ve 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 $22,584/$BTC.

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, it’s SBF, Sam Bankman Fried’s Alameda research.

They have an article that says “Alameda Research’s Recent Alleged stETH Selloff

Puts Celsius Network in Trouble” and the article states “Alameda Research recently

redeemed 50,000 stETH for ETH, and the worries are this will affect the stETH/ETH peg.”

They are messing with stETH and the ETH peg, drying up the liquidity and forcing Celsius’s

hand…and 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??

Celsius’s demise would be the push to begin the fall of who??

What about Tether USDT??

So if you didn’t know, Tether is an investor in Celsius.

From Celsius’s own filings, we can see Tether is in position 2 and 3, as the top shareholder…besides

Celsius themselves.

They are heavy into Celsius…

Sooo, the Tether reserve’s….what is backing USDT?

Well Tether put out an attestation just last month, not a full audit, but just an attestation…as

we can see from the document, they had just over 4 billion in cash on hand…but then

if you look below, they had over 3.1 billion in secured loans, and over 5 billion in other

investments…aka 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 began…11 billion redeemed from May 10th to May 27th, and just yesterday…another

billion was redeemed.

Can Tether survive more redemptions??

Now, Tether obviously has a share of Celsius tokens, they are the 2nd largest shareholder…so

part of that 5 billion investment in digital tokens is Celsius…but what about in loans?

Well in October of last year, Bloomberg put out the article “Anyone Seen Tether’s

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 companies—something

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 in…as some of the collateral backing the reserves, is from Celsius

themselves!!

Now I’m sure you’ saw what happened to Celsius yesterday…a 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 “@SBF_FTX.

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 that's not how exchanges are supposed to protect

their customers.

Spot market went above 2$ to break index and trigger liquidations on purpose.

That's a spot manipulation to liquidate traders.

FTX, SBF, and most likely Alameda…now 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 overblown…SBF said this “USDT----very liquid on exchanges, moderately

liquid for creations/redemptions--Messy and imperfect but works--claims that it's < 95%

backed are totally unfounded (not to say it's only 95%!)--If there were issues with USDT/USDC

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 wouldn’t be able to fulfill all

of them.

But then he says “If there were issues with USDT/USDC it would be bad but crypto would

survive” Now this thread was fully about Tether USDT…why 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 redemptions…FTX is invested in Tether’s 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?

Don’t they have the same banking partner as Tether….Deltec in the bahamas?

You wouldn’t be incorrect, they do Bank with Deltec…but 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….Cheers viewers I’ll see you next time!