Celsius, the renowned crypto lending platform, has reportedly transferred a staggering $59 million worth of altcoins to an exchange. This significant move has sparked widespread speculation and intrigue, with many wondering if this could be the prelude to a massive conversion to Bitcoin (BTC) and Ethereum (ETH).
Celsius continues its sales activity
Celsius Network, a bankrupt crypto lending platform, has made a significant move in the crypto market. On Monday morning, the company transferred a total of $59.4 million worth of various cryptocurrencies to FalconX, a well-known institutional cryptocurrency exchange. This action, which was given the green light by a US bankruptcy court late last month, is speculated to be a strategic move to exchange these altcoins for Bitcoin (BTC) and Ethereum (ETH).
Blockchain analytics firm Arkham Intelligence provided data showing that a Celsius-controlled wallet was responsible for sending $13.6 million in Polygon’s MATIC, $10.7 million in Chainlink’s LINK, and $7.3 million in AAVE to a FalconX deposit address.
According to a report by Kaiko, a leading cryptanalysis company, this large-scale transfer could put significant selling pressure on the prices of the tokens involved. The reason behind this is a phenomenon known as liquidity deterioration, which occurs when a large volume of a particular asset is sold, reducing its availability and potentially lowering its price due to excess supply in the market.
Increased volatility in the Altcoin market
Celsius received court permission to transform its altcoin assets into the more liquid forms of Bitcoin (BTC) and Ethereum (ETH), as part of its recovery strategy. Reports indicate that the company transferred a portion of its holdings to Wintermute, a market maker, and Paxos, a stablecoin issuer.
Since Celsius filed for bankruptcy about a year ago, most of his altcoin holdings have been in a steady decline. Despite a rise in Bitcoin Cash (BCH) and Litecoin (LTC) in June, triggered by the launch of the institutional exchange EDX, the rest of the Celsius portfolio saw a drop ranging from 80% to 5% over the past year. .
Earlier on Monday, Celsius made another series of transactions, transferring an additional $8.5 million worth of Chainlink’s LINK, $7.8 million worth of Synthetix’s SNX, and $3 million worth of Binance’s BNB token. The company also moved more than $1 million worth of ZRX, 1INCH, and Tether’s gold-pegged stablecoin XAUT.Celsius to convert its collection of smaller tokens, valued at about $170 million, into Bitcoin and Ethereum, the two Largest cryptocurrencies by market capitalization.
Adding to the company’s challenges, its former CEO, Alex Mashinsky, found himself in legal trouble. On Thursday, the Department of Justice (DOJ) formally indicted him on fraud charges.
This post Celsius sends almost $60 million worth of altcoins to trade! Is the altcoin pressure building up?
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