As the crypto market holds its breath, a company is about to drop a bomb that could reverberate through the corridors of digital currencies. On July 1, Celsius Network, a now-bankrupt crypto lender, plans to sell a whopping $215 million worth of altcoins, marking an unprecedented liquidation.
The impending sell-off is accompanied by a greater regulatory crackdown on crypto in the United States, which could lead to a ripple effect in the market.
Altcoins sale underway
This financial maneuver, orchestrated amid a tight regulatory crackdown in the US, will see Celsius Network convert a wide variety of altcoins into Bitcoin (BTC) and Ethereum (ETH).
“Celsius will sell all altcoins from all customers (except Custody and Withhold accounts) starting July 1 and convert them to Bitcoin and Ethereum,” said Celsius.
The altcoins scheduled for this sale include:
- Celsius (CEL)
- Polygon (MATIC)
- Cardano (ADA)
- Chain link (LINK)
- Litecoins (LTC)
- Polka Dot (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 continue to ponder the fate of their investments. An important question is how the market will react to the pressure of this massive sell-off and whether it will lead to an altcoin crash.
The impact on specific altcoins, investor sentiment and broader market trends is as uncertain as expected.
Will Altcoins Crash?
Celsius Network’s altcoin portfolio contains several key assets. Among them, the CEL token, Celsius Network’s native token, worth about $70.5 million, is the largest.
This year was not good for CEL, with its value declining by almost 80.8%. Therefore, the impending liquidation threatens to push it further down the slippery slope.
The million dollar investor question is how this sell-off will affect CEL’s future price trajectory and overall sentiment around the token.
Another altcoin in the crosshairs is Polygon. With approximately $51.8 million in tokens held by Celsius Network, MATIC is another heavyweight contender.
The token is already down more than 25% in the past week. Now, with the sell-off approaching, MATIC’s price and market sentiment are perilously at stake.
Moreover, Cardano is another prominent altcoin affected by Celsius Network’s liquidation plan. Celsius Network has about $26.2 million in ADA tokens.
The market is anxiously anticipating the impact on ADA’s value, especially after a recent fall of more than 17% due to regulatory concerns.
The altcoin selloff is likely to resonate beyond these three tokens in the wider crypto market. Other notable Celsius Network altcoins, including Chainlink, Litecoin, Polkadot, Bitcoin Cash, Aave, and Binance Coin, are also under potential selling pressure. Therefore, the results of this sell-off could erode investor confidence.
Brace yourself for impact
While 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 fate of the market. Therefore, the key to navigating these turbulent waters is making decisions with the utmost clarity and thorough research.
Ultimately, the planned sell-off of altcoins could represent a pivotal moment in cryptocurrency history, highlighting the need for robust regulatory frameworks, transparency, and investor protection in the crypto ecosystem.
Whether Celsius Network’s unprecedented move will spark an altcoins crash or just a ripple in the vast ocean of cryptocurrencies remains to be seen. But one thing is certain: July 1 will be a day to look forward to.
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