As the crypto market holds its breath, one company is readying to drop a bombshell that could echo through the corridors of digital currency. On July 1, Celsius Network, a now-bankrupt crypto lender, plans to sell off a staggering $215 million in altcoins, marking an unprecedented liquidation.
The impending sell-off is set against a larger regulatory crackdown on crypto in the United States, which could result in a ripple effect in the market.
Altcoins Sell-Off Underway
This financial maneuver, orchestrated amid a stringent regulatory crackdown in the US, will see Celsius Network converting a wide array of altcoins to Bitcoin (BTC) and Ethereum (ETH).
“Celsius will be selling all altcoins from all customers (except Custody and Withhold accounts) starting July 1st and will be converting them into Bitcoin and Ethereum,” said Celsius.
The altcoins slated 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 spotlight on Celsius Network’s plan, crypto enthusiasts are left pondering the fate of their investments. A key question is how the market will react to the pressure of this enormous sell-off and if it will lead to an altcoins crash.
The impact on specific altcoins, investor sentiment, and broader market trends is as uncertain as anticipated.
Will Altcoins Crash?
Celsius Network’s altcoin portfolio features several significant assets. Among them is the CEL token, Celsius Network’s native token, valued at approximately $70.5 million, is the largest.
This year has not been kind to CEL, with its value plunging almost 80.8%. Therefore, the upcoming liquidation threatens to push it further down the slippery slope.
The million-dollar question on investors’ minds is how this sell-off will influence CEL’s future price trajectory and the overall sentiment surrounding the token.
Another altcoin in the crosshairs is Polygon. With around $51.8 million worth of tokens held by Celsius Network, MATIC is another heavyweight contender.
The token has already declined over 25% in the past week. Now, with the impending sell-off, MATIC’s price and market sentiment is hanging precariously in the balance.
Additionally, Cardano is another prominent altcoin affected by Celsius Network’s liquidation plan. Celsius Network holds approximately $26.2 million worth of ADA tokens.
The market anxiously anticipates the impact on ADA’s value, especially after a recent decline of over 17% due to regulatory concerns.
The altcoins sell-off will likely reverberate beyond these three tokens in the wider crypto market. Other notable altcoins held by Celsius Network, including Chainlink, Litecoin, Polkadot, Bitcoin Cash, Aave, and Binance Coin, also face potential selling pressure. Therefore, the outcomes of these sell-offs could shake investor confidence.
Brace 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 significant, does not seal the market’s fate. Therefore, the key to navigating these turbulent waters is to make decisions with utmost clarity and thorough research.
In the end, the scheduled altcoin sell-off could be a pivotal moment in the history of cryptocurrency, which underlines the need for robust regulatory frameworks, transparency, and investor protection in the crypto ecosystem.
Whether Celsius Network’s unprecedented move will trigger an altcoins crash or merely a ripple in the vast ocean of crypto remains to be seen. But one thing is certain: July 1 will be a day to watch.
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