Celsius, a prominent cryptocurrency lending platform, has initiated massive sales of several altcoins, raising concerns among investors. The transactions, tracked by blockchain sleuths, indicate that Celsius transferred significant holdings of multiple cryptocurrencies to FalconX, a digital assets trading platform.
Specifically, 1.27 million Chainlink (LINK), worth $8.5 million, 2.83 million Synthetix (SNX) valued at $7.84 million, 12,597 Binance Coin (BNB), totaling $3 million, 4.45 million 1INCH, equating to $2.26 million, 8.53 million 0x (ZRX), corresponding to $1.9 million, and 439,000 FTX tokens, worth $713,000, have been moved to FalconX.
Note that #Celsius seems to be starting to swap altcoins for $BTC and $ETH.— Lookonchain (@lookonchain) July 6, 2023
Most of the altcoins have been transferred to wallet"0x4131".
Transferred 1,393 StaFi( $rETH ) to Wintermute Trading and received 1,393 $ETH.
Holds $164.5M of altcoins on the EVM chain. pic.twitter.com/JPAPDCv7qa
In addition, 186,149 BONE tokens, worth $235,000, have been deposited into cryptocurrency exchange OKEx. Most of the altcoins have been transferred to wallet "0x4131." In a previous transaction, Celsius transferred 1,393 StaFi (rETH) to Wintermute Trading and received 1,393 Ether (ETH) in return. The platform holds $164.5 million of altcoins on the Ethereum Virtual Machine (EVM) chain.
This significant liquidation of altcoins by Celsius comes amid a turbulent period for the company. Celsius's CEO, Alex Mashinsky, has been facing legal issues, with his bail recently set at $40 million and travel restrictions imposed. While the bail has been paid, the event casts a shadow over the company's operations and future.
Notably, despite the company's efforts to stabilize its situation, Celsius is still considered bankrupt. These massive sales of altcoins could be seen as part of the company's attempts to raise funds amid its current financial and legal predicaments.
The implications of these asset sales for Celsius and its users are uncertain. It may lead to a potential devaluation of the sold tokens due to the sudden increase in supply on the market. Moreover, Celsius's customers might be concerned about the platform's financial stability and the safety of their assets.