I guess I’m more suspicious of Celsius than the other people in this thread.
Beyond the riskiness of their business model and the counterparty risk from all the other defi protocols they have funds in, I don’t trust the CEL token itself or how important the CEL token is to Celsius’s balance sheet.
There are strange movements of CEL tokens between Celsius wallets and exchanges.
If this is wash trading, then we don’t know what the true value of the CEL token is. Worse, this possibly artificially priced token makes up a large chunk of Celsius’s balance sheet.
In situations like the BadgerDAO Hack, Celsius’s vast holdings of CEL are providing them with a lot of cushion to absorb losses. Effectively, that CEL is acting as insurance.
If something catastrophic happens and this CEL has to be sold to cover losses, the BNT in this pool will be arbitraged out to buy more CEL as the pool maintains balance.
Which means that basically Bancor is acting as Celsius’s reinsurer, and this BNT co-investment is providing stop-loss insurance.