As the crypto market holds its breath, a company is preparing to drop a bombshell that could echo through the halls of digital currency. On July 1, Celsius Network, a now bankrupt crypto lender, plans to sell a staggering $215 million worth of altcoins, marking an unprecedented liquidation.
The impending selloff comes amid a greater regulatory crackdown on crypto in the US, which could have a ripple effect on the market.
Altcoin sale in progress
This financial maneuver, orchestrated amid a tough regulatory crackdown in the US, will see Celsius Network convert a wide range of altcoins into Bitcoin (BTC) and Ethereum (ETH).
“Celsius will sell all altcoins from all customers (except Custody and Withhold accounts) from July 1 and convert them to Bitcoin and Ethereum,” said Celsius.
Altcoins slated for this sale include:
- Celsius (CEL)
- Polygon (MATIC)
- Gimbal (ADA)
- Chain link (LINK)
- Litecoin (LTC)
- Peas (DOT)
- Bitcoin Money (BCH)
- Aave (AAVE)
- Binance Coin (BNB)
- Uniswap (UNI)
- Stellar (XLM)
- Solana (SOL)
- EOS (EOS)
- FTX Token (FTT)
- Serum (SRM)
With the spotlight on Celsius Network’s plan, crypto enthusiasts are wondering the fate of their investments. A key question is how the market will react to the pressure of this huge selloff and whether it will lead to an altcoin crash.
The impact on specific altcoins, investor sentiment, and general market trends is as uncertain as expected.
Will Altcoins crash?
Celsius Network’s altcoin portfolio includes several prominent assets. Among them is the CEL token, the native token of Celsius Network, valued at around $70.5 million, is the largest.
This year has not been kind to CEL, with its value plunging nearly 80.8%. Therefore, the upcoming sell-off threatens to push it further down the slippery slope.
The million dollar question on the minds of investors is how this selloff will influence the future price trajectory of CEL and the general sentiment surrounding the token.
Another altcoin in the crosshairs is Polygon. With around $51.8 million in tokens held by Celsius Network, MATIC is another strong contender.
The token is already down over 25% in the past week. Now, with the selloff looming, MATIC’s price and market sentiment hang precariously in the balance.
Additionally, Cardano is another top altcoin affected by Celsius Network’s liquidation plan. Celsius Network holds approximately $26.2 million worth of ADA tokens.
The market is eagerly anticipating the impact on ADA’s value, especially after a recent decline of more than 17% due to regulatory concerns.
Selling altcoins will likely ripple beyond these three tokens into the broader crypto market. Other notable altcoins held by Celsius Network, including Chainlink, Litecoin, Polkadot, Bitcoin Cash, Aave, and Binance Coin, are also facing potential selling pressure. Consequently, the results of these sales could shake investor confidence.
Hang in there for impact
Although this event may seem like a doomsday scenario for altcoin holders, it is important to remember that the market is not a one-way street.
The dynamics of crypto trading are inherently unpredictable, and a single event, no matter how large, does not seal the fate of the market. Therefore, the key to navigating these turbulent waters is to make decisions with utmost clarity and thorough research.
Ultimately, the anticipated sale of altcoins could be a watershed moment in cryptocurrency history, underscoring the need for strong regulatory frameworks, transparency, and investor protections in the crypto ecosystem.
It remains to be seen whether Celsius Network’s unprecedented move will trigger an altcoin crash or just a ripple in the vast ocean of crypto. But one thing is certain: July 1 will be a day to watch.
Disclaimer
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