Celsius Withdrawal Jam
How mass withdrawals could spell trouble for LSTs
Celsius has jammed Ethereum’s validator withdrawal queue shut for the next 14 days, the longest delay since the queue cleared out for the first time post-Shapella in October! Are liquid staking tokens (LSTs) now flirting with a risk of depeg?
The bankrupt cryptocurrency lender announced yesterday that it would be unstaking its ETH to liquidate for the benefit of creditors. Over 550k ETH – 87% of the withdrawal queue – is attributable to Celsius, and a further 500k in ETH remains to be unstaked.
Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process
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Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
