News - Celsius wants to sell hundreds of millions of dollars of ETH

By Luc Vesters

Celsius wants to sell hundreds of millions of dollars of ETH

Ethereum (ETH)

The bankrupt crypto lending company Celsius prepares to compensate its creditors. To ensure adequate liquidity, large amounts of crypto assets are now being moved, including ETH worth hundreds of millions of US dollars. The measure was announced in July 2022 by the bankruptcy petition. Celsius' creditors have been waiting 18 months for financial compensation and now have new hope.

According to Celsius, the ETH holdings will be taken off staking, where they "would have provided the company with valuable revenue through staking awards."

According to the blockchain analysis company Nansen, Celsius owns about a third of the Ether that is no longer available. It totals about 206,300 ETH, worth about $468.5 million. Celsius has currently withdrawn more than 40,249 ETH.

Some investors are concerned that releasing tokens on staking could have a negative impact on the price. Others remain calmer, arguing that the move should not be a problem for the price of the second-largest cryptocurrency.

According to Coinmarketcap, ETH's trading volume is currently about $11.4 billion. Even in the unlikely event of a one-time full sale of all Ether held by Celsius, the market should be able to absorb the additional sales volume.

Celsius represents the troubles of the crypto industry in 2022, in which many cryptocurrency lenders had to file for bankruptcy. The responsible bankruptcy judge also criticized the company's announcement that it was moving forward after the wanted to refocus bankruptcy on Bitcoin mining.

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