Did Celsius Play a Part in Terra\'s Downfall? Nansen\'s Analysis Unveils Key Players

The collapse of TerraUSD (UST) sent shockwaves through the crypto world, and the question on everyone\'s mind is: what exactly happened? Blockchain analytics company Nansen has released a detailed report shedding light on the events that led to Terra\'s catastrophic failure, and their findings point to the involvement of multiple entities, including DeFi lender Celsius Network.

Nansen\'s Report: Multiple Wallets Involved in Terra\'s De-pegging

According to Nansen, the de-peg of Terra’s US dollar stablecoin wasn\'t the work of a single attacker. Their research linked the initial destabilization to the actions of several large crypto wallets, identifying seven key players involved in the sell-off. One wallet specifically was associated with crypto lending platform Celsius, sparking intense debate about their role in the unfolding crisis. The firm says one of two wallets drew $420M from the Anchor Protocol.

Celsius\'s Anchor Protocol Activity Before the Collapse

Prior to the dramatic collapse, Celsius pulled significant amounts of funds from the Anchor Protocol, a DeFi platform offering high yields on UST deposits. As The Block Crypto reported, Celsius withdrew at least $500 million from Anchor before UST\'s downward spiral. This timing has fueled speculation and scrutiny regarding Celsius\'s potential impact on the Terra ecosystem\'s stability. Almost a month ago, The Block Crypto reported that Celsius pulled at least $500M from the Anchor protocol before the collapse.

Nansen Refutes "Single Attacker" Narrative

Nansen’s analysis firmly refutes the theory that a single entity was responsible for the UST de-pegging. “We refute the” idea of a lone wolf attacker, Nansen emphasized. Instead, the firm highlights the coordinated actions of multiple large holders that contributed to the "death spiral" of TerraUSD. La firma de análisis de blockchain Nansen dice que varias partes estuvieron involucradas en la venta masiva que condujo a una “espiral de muerte” para TerraUSD. Analytics firm Nansen shows that the actions of multiple large holders led to the USDTerra collapse.

Terra\'s Collapse and the Contagion Effect on Celsius and Three Arrows Capital

The aftermath of Terra\'s downfall had far-reaching consequences, triggering a contagion effect across the crypto market. Un nuevo informe de Nansen recorre los acontecimientos que llevaron a 3AC y Celsius a salir de sus posiciones en stETH en medio del colapso de Terra y el descalabro de the collapse of the Terra. Terra’s collapse ultimately contributed to highly publicized insolvency troubles at both Celsius and Three Arrows Capital, according to research from the blockchain analytics platform Nansen. These firms experienced significant financial difficulties, further illustrating the systemic risks associated with decentralized finance.

Conclusion: A Complex Web of Factors Led to Terra\'s Demise

While Nansen\'s report identifies Celsius as one of the entities involved in the events leading up to Terra\'s collapse, it\'s important to note that the situation was likely the result of a complex interplay of factors. The blockchain analytics firm reported that different parties were involved in a sell-off that. Further investigation is needed to fully understand the motivations and strategies of each party involved and to prevent similar events from occurring in the future.