Major Transfer of $59M Worth of MATIC, LINK, and Other Altcoins by Celsius to Exchange
Celsius Network, a prominent crypto lender, has recently transferred more than $59 million worth of altcoins to FalconX in anticipation of potential liquidation. The company intends to convert these tokens into Bitcoin (BTC) or Ethereum (ETH) as part of its strategy to reimburse customers affected by its previous bankruptcy filing in July 2022. Among the altcoins moved by Celsius are Polygon (MATIC), Chainlink (LINK), and Aave (AAVE), with its largest holding being its native CEL token, currently valued at over $106 million.
The decision to transfer the altcoins to FalconX was based on data from Arkham Intelligence, a reputable crypto security platform. Celsius made a substantial deposit of $13.6 million worth of MATIC, $10.7 million in LINK, and $7.3 million in AAVE to an address controlled by FalconX. Previous transactions involved $8.5 million worth of LINK, $7.8 million of SNX (Synthetix native token), and $3 million in BNB token. Additionally, Celsius transferred other tokens like 0x Protocol (ZRX), 1inch (1INCH), FTX Token (FTT), and Tether Gold (XAUT) to the FalconX wallet address. Notably, FalconX has already initiated the process of depositing these tokens onto Binance, indicating that a sale is underway.
Despite these transfers, Celsius still retains a substantial portfolio. According to data from Dune Analytics, the company holds over $106 million worth of CEL, $47 million in other altcoins (including $16.5 million in MATIC and $12.7 million in AAVE), and over $29 million in stablecoins ($24 million in USDC and $2 million in USDT).
However, converting some of these tokens may pose challenges for the Celsius team. Kaiko, a blockchain firm, recently highlighted the potential difficulties in liquidating certain tokens due to their lack of liquidity. One such token is CEL, which suffers from an extremely limited liquidity pool.
Analysts at Kaiko have also expressed concerns about the possible downward pressure on token prices resulting from the sell-off. The large-scale liquidation of altcoins by Celsius could create selling pressure, potentially impacting the value of the tokens involved.
As Celsius moves forward with its plan to convert altcoins into BTC or ETH, the market will closely observe the impact on the overall cryptocurrency landscape. The reimbursement of customers affected by the previous bankruptcy filing will largely depend on the success of this conversion strategy. Celsius Network aims to navigate these challenges and honor its commitment to its customers, while also managing the potential market effects caused by the liquidation.
In conclusion, Celsius Network’s recent transfer of altcoins worth over $59 million to FalconX is a strategic move in preparation for the liquidation process. By converting these tokens into Bitcoin or Ethereum, Celsius aims to fulfill its obligation to reimburse customers affected by its earlier bankruptcy filing. However, the potential liquidity issues surrounding certain tokens and the resulting market pressures pose challenges for the company. As the crypto industry closely monitors the developments, Celsius Network strives to find a balance between meeting its customer obligations and mitigating the potential impact on token prices.