Celsius Network to Liquidate Altcoins Worth $215M – Trouble Ahead for MATIC, LTC, ADA & LINK
Celsius Network, the embattled cryptocurrency lending platform, has made a bold move by announcing its decision to sell all altcoins held by customers, except those in Custody and Withhold accounts, starting from July 1st. The altcoins will be converted into Bitcoin (BTC) and Ethereum (ETH), marking a significant shift in the platform’s strategy.
According to Celsius, the total altcoin sell pressure is estimated at $215 million, with prominent assets such as $CEL, $MATIC, $ADA, $LINK, and $LTC among those to be liquidated. This move is expected to have a considerable impact on the altcoin market and attract widespread attention from crypto enthusiasts and investors alike.
This decision comes against the backdrop of Celsius Network’s troubled past. The platform faced insolvency issues and filed for Chapter 11 bankruptcy in July last year after a series of events that shook the crypto community. Following the freeze of withdrawals, swaps, and transfers in response to “extreme market conditions,” rumors of Celsius’ deep insolvency began to circulate.
The situation worsened as the company laid off a significant portion of its workforce due to mounting liquidity issues. A subsequent court filing from Celsius’ advisory partner, Kirkland & Ellis, revealed a staggering $1.3 billion hole in the platform’s balance sheet, further exacerbating its financial woes.
However, in a surprising turn of events, Celsius Network announced plans to make a comeback in September 2022, with a renewed focus on custody services. Yet, a U.S. bankruptcy judge’s ruling in January 2023 determined that Celsius Network held ownership of the majority of the deposited cryptocurrency, leaving most customers at the end of the line for repayment in the platform’s bankruptcy proceedings.
Despite its tumultuous past, Celsius Network recently made headlines when it was acquired by the cryptocurrency consortium Fahrenheit on May 26, 2023. This acquisition, coupled with the decision to liquidate altcoins in favor of Bitcoin and Ethereum, has sparked intense speculation about Celsius Network’s future trajectory and the implications for the broader cryptocurrency landscape.
As the July 1st deadline for the altcoin sell-off approaches, the crypto community eagerly awaits the outcome and potential repercussions of this bold move by Celsius Network. Stay tuned for further updates on how this development could reshape the dynamics of the crypto market and affect the fortunes of both Celsius Network and its customers.
