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Cardano (ADA) Among Celsius' Sell-off List: What to Expect?

Fri, 06/16/2023 - 08:22
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Arman Shirinyan
Apart from Cardano, Solana and Matic might also face selling pressure
Cardano (ADA) Among Celsius' Sell-off List: What to Expect?
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Celsius, a notable player in the cryptocurrency lending and borrowing sector, has recently publicized its decision to liquidate its customers' altcoin holdings. The divestment will commence on July 1, sparing only Custody and Withhold accounts. This development is particularly significant given that Cardano (ADA), Polygon (MATIC) and Solana (SOL) constitute the largest portion of the platform's altcoin reserves.

Cardano has been hailed as a transformative force within the blockchain realm. However, the announcement arrives on the back of a disappointing price performance by ADA and SOL, both having experienced an approximately 30% devaluation in recent days.

The decision has provoked a wave of discontent within the cryptocurrency community, with critics accusing Celsius of potential market manipulation and a failure to uphold its fiduciary duties. The primary concern is that other market participants might capitalize on this publicized sell-off by "front-running" — selling these coins before Celsius can execute its planned liquidations, thus triggering a further decline in prices.

The potential ramifications of Celsius' divestment are substantial. Large-scale liquidations can exert significant downward pressure on the prices of the targeted altcoins. This development could, in turn, trigger a cascade effect, compelling altcoin holders across various platforms to sell their assets in anticipation of further depreciation.

Ethereum (ETH) Price Analysis for June 15

Conversely, for investors with a bullish long-term outlook on these altcoins, the sell-off might present a compelling buying opportunity. As prices decrease, the potential for future returns grows proportionally for investors with the fortitude to buy these assets at a discount.

The forthcoming divestment by Celsius is poised to have immediate and consequential impacts on the altcoin market. Whether these impacts will translate into further price devaluation or an attractive buying opportunity remains uncertain.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.