In the midst of mounting pressures on the cryptocurrency market, a company is poised to unleash a potential bombshell that could impact the digital asset space. On July 1st, Celsius Network, a cryptocurrency lending company, has filed for bankruptcy and plans to sell an astonishing $215 million worth of altcoins, marking an unprecedented liquidation event.
The impending sell-off comes amidst a broader regulatory crackdown on cryptocurrencies in the United States, which could potentially ripple through the market.
CELSIUS SELL ALTCOIN
Amidst stringent regulatory crackdown in the United States, Celsius Network has planned a financial operation to convert a range of altcoins into Bitcoin (BTC) and Ethereum (ETH).
Celsius stated:
“We will sell all altcoins from all customers (excluding Deposit Accounts and HODL Accounts) starting from July 1st and convert them into Bitcoin and Ethereum.”
Expected altcoins for this sell-off include:
- Celsius (CEL)
- Polygon (MATIC)
- Cardano (ADA)
- Chainlink (LINK)
- Litecoin (LTC)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- Aave (AAVE)
- Binance Coin (BNB)
- Uniswap (UNI)
- Stellar (XLM)
- Solana (SOL)
- EOS (EOS)
- FTX Token (FTT)
- Serum (SRM)
With the attention on Celsius Network’s plan, cryptocurrency enthusiasts are contemplating the fate of their investments. An important question arises: how will the market react to the pressure from this massive sell-off, and could it lead to a collapse of altcoins?
The specific impact on individual altcoins, investor sentiment, and broader market trends is uncertain and difficult to predict.
HOW WILL ALTCOIN ?
Celsius Network’s altcoin investment portfolio includes some significant assets, among which is the CEL token, the native token of Celsius Network, valued at around $70.5 million, making it the most valuable token.
This year has been unfavorable for CEL, with its value declining by nearly 80.8%. Therefore, the upcoming liquidation poses a risk of further downward pressure on its price.
The question on investors’ minds is how this sell-off will impact the future price trajectory of CEL and the overall sentiment surrounding the token.
Another altcoin that may face a similar fate is Polygon (MATIC). With approximately $51.8 million worth of tokens held by Celsius Network, MATIC is another significant contender.
The token has experienced a decline of over 25% in the past week. Now, with the impending sell-off, the price of MATIC and market sentiment are delicately poised.
Furthermore, Cardano is another prominent altcoin that is being affected by Celsius Network’s liquidation plan. Celsius Network holds around $26.2 million worth of ADA tokens.
The market is concerned about the potential impact on the value of ADA, especially following its recent decline of over 17% due to regulatory concerns.
The sell-off of altcoins may have repercussions beyond the three aforementioned tokens in the broader cryptocurrency market. Other notable altcoins held by Celsius Network, including Chainlink, Litecoin, Polkadot, Bitcoin Cash, Aave, and Binance Coin, also face potential selling pressure. Consequently, the outcomes of these liquidations have the potential to shake investor confidence.
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