- It has been reported that the bankrupt crypto credit platform Celsius made a surprising $59 million altcoin transfer to an exchange.
- It is estimated that this move, approved by the US bankruptcy court at the end of last month, is a strategic move to exchange these altcoins for Bitcoin and Ethereum.
- It is reported that part of the company’s assets were transferred to market maker Wintermute and stablecoin issuer Paxos.
Celsius, which has obtained permission from the US court to convert altcoin assets into Bitcoin and Ethereum, is making transfers to sell its altcoins.
Celsius Continues to Sell Altcoins
It has been reported that the bankrupt crypto credit platform Celsius made a surprising $59 million altcoin transfer to an exchange. This significant move has sparked speculation and curiosity, with many wondering if it could be a precursor to a large-scale conversion to Bitcoin (BTC) and Ethereum (ETH).
The company transferred a total of $59.4 million worth of various cryptocurrencies to FalconX, a well-known institutional crypto exchange, on Monday. It is estimated that this move, approved by the US bankruptcy court at the end of last month, is a strategic move to exchange these altcoins for Bitcoin (BTC) and Ethereum (ETH).
Data provided by blockchain analysis company Arkham Intelligence shows that a wallet controlled by Celsius is responsible for sending $13.6 million of Polygon’s MATIC, $10.7 million of Chainlink’s LINK, and $7.3 million of AAVE to FalconX.
According to a report by Kaiko, a leading crypto analysis company, this large-scale transfer could create significant selling pressure on the relevant tokens’ prices. This is due to an event known as liquidity disruption, which carries the potential for a decrease in price due to the reduced presence and oversupply in the market when a large volume of a specific asset is sold.
Increased Volatility in the Altcoin Market
Celsius has obtained permission to convert altcoin assets into more liquid forms of Bitcoin (BTC) and Ethereum (ETH) as part of its recovery strategy. It is reported that part of the company’s assets were transferred to market maker Wintermute and stablecoin issuer Paxos.
Most of Celsius’ altcoin assets experienced a continuous decline after filing for bankruptcy about a year ago. While Bitcoin Cash (BCH) and Litecoin (LTC) experienced a rally with the launch of the institutional exchange EDX in June, the rest of Celsius’ portfolio experienced a decline ranging from 80% to 5% last year.
Celsius made another series of transactions on Monday, transferring an additional $8.5 million from Chainlink’s LINK, $7.8 million from Synthetix’s SNX, and $3 million from Binance’s BNB token. The company also moved over $1 million in ZRX, 1INCH, and Tether-based stablecoin XAUT. Celsius plans to convert a smaller token collection worth approximately $170 million into Bitcoin and Ethereum, the two largest cryptocurrencies in terms of market value.
In addition to the company’s challenges, former CEO Alex Mashinsky faced legal issues. On Thursday, he was formally charged with fraud by the Department of Justice (DOJ).
