Celsius transfers $59M of altcoins, possibly preparing to convert them into BTC or ETH.

Celsius transfers $59M of altcoins, possibly preparing to convert them into BTC or ETH.

The Impact of Celsius Network’s Deposits on the Blockchain Industry

Bankrupt crypto lender Celsius Network recently made a significant move in the blockchain industry by depositing $59.4 million worth of cryptocurrencies to institutional crypto exchange FalconX. This maneuver, made possible by a U.S. bankruptcy court ruling, has the potential to impact the prices of bitcoin (BTC) and ether (ETH) due to the resulting sell pressure on these tokens.

The move has raised concerns about liquidity deterioration, as pointed out by crypto analytics firm Kaiko in a report last week. The influx of cryptocurrencies into FalconX could potentially affect the prices of these tokens, given the reduced liquidity resulting from the deposits.

According to blockchain data provided by Arkham Intelligence, a Celsius-controlled crypto wallet sent significant amounts of Polygon’s MATIC, Chainlink’s LINK, and AAVE to the FalconX deposit address. In addition, Celsius transferred substantial sums of LINK, Synthetix’s SNX, Binance’s BNB token, as well as ZRX, 1INCH, and Tether’s gold-pegged stablecoin XAUT. These transactions highlight the scale of Celsius Network’s involvement in the blockchain industry and the potential impact it can have on the market.

The decision allowing Celsius to convert its stash of smaller tokens, valued at around $170 million, into bitcoin and ether has paved the way for these recent deposits. The bankruptcy court ruling, issued on June 30, offers Celsius the opportunity to convert its holdings into the two largest cryptocurrencies by market cap. This move comes after Celsius filed for bankruptcy protection last summer following the suspension of withdrawals. Notably, the former CEO of Celsius, Alex Mashinsky, was recently arraigned on fraud charges by the Department of Justice.

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The blockchain industry has also witnessed Celsius Network’s movement of $64 million worth of tokens from custody wallets to their over-the-counter deposit wallet. This shift suggests that Celsius may be preparing for potential token sales in the near future, further emphasizing their role in the market.

Overall, the recent deposits made by Celsius Network to FalconX have raised questions about liquidity and the potential impact on token prices. The blockchain industry is closely monitoring these developments, as they have the potential to shape market dynamics. As we observe the outcomes of these actions, it is clear that even in times of bankruptcy and legal challenges, blockchain companies continue to play a significant role in shaping the industry’s landscape.

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Edited by Stephen Alpher.

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