Why Has Celsius Transferred 653 Million Tokens to a New Wallet?

Crypto News– The decentralized lending platform Celsius (CEL) has initiated a substantial transfer of its holdings to a new wallet. Notably, this movement involved not only CEL tokens but also several other cryptocurrencies, as disclosed by developer Cam Crews.

Why Has Celsius Transferred 653 Million Tokens to a New Wallet?

As per Crews, Celsius executed the transfer of approximately $30 million worth of Ethereum (ETH) and other stablecoins in conjunction with a sizable sum of $84.33 million worth of CEL tokens. The precise motivations behind this maneuver remained undisclosed at the time of reporting, prompting various speculations. Some in the crypto community speculated that Celsius might be either fortifying the security of its assets or divesting a portion of them.

Of particular significance is the fact that, on October 5, Celsius publicly acknowledged an impending attack on its clientele. In a statement posted on X (formerly known as Twitter), Celsius declared that it was actively implementing security protocols to ward off potential threats. Consequently, it is conceivable that the transfer of these tokens may have been one of the proactive measures taken to guard against any imminent attacks.

CEL Price Action

On the 4-hour CEL/USD chart, the prevailing market structure appears notably bearish, characterized by a succession of downtrends.

This persistent decline is primarily attributed to the selling pressure stemming from the erosion of investor confidence in the Celsius project. Insights gleaned from the Relative Strength Index (RSI) indicate that CEL has entered oversold territory, with the RSI reading registering at 29.10.