Summary:
- Celsius, a now-bankrupt crypto lender, has proposed to sell its users’ altcoin holdings, including Cardano’s ADA and Polygon’s MATIC tokens for bitcoin (BTC) and ether (ETH).
- This proposed move is set to impact the market as it awaits approval from the bankruptcy court.
- Cardano recently faced scrutiny from the SEC, leading to a plunge of over 40% in its price.
Celsius’s Bankruptcy Proposal
Weeks after the SEC’s allegations, Cardano and the crypto market have displayed signs of recovery. Now-bankrupt crypto lender Celsius plans to shake up the market with its reorganization proposal. Celsius plans to sell its ADA tokens , and users are growing concerned.
In the wake of TradFi’s newfound interest in the crypto industry, the market is showing signs of recovery. Leading tokens like Bitcoin , Ethereum, and Cardano have all reclaimed crucial levels. However, amidst this positive momentum, now-bankrupt crypto lender Celsius wants to drop a bombshell that could send tremors through the industry. The defunct crypto lender has proposed to sell its users’ altcoin holdings, including Cardano’s ADA and Polygon’s MATIC , for bitcoin (BTC) and ether (ETH).
Growing Concern
As news of this impending chaotic liquidation event spreads, users’ concerns are growing, fearing the impact it could have on the market. Fear and Uncertainty On June 15, Celsius announced that it would sell its customer’s altcoins valued at $215 million dollars excluding custody and withhold accounts starting July 1st . As part of its controversial reorganization plan , the crypto lender shared that it will convert its users’ holdings into bitcoin (BTC) and ether (ETH). About $26 million worth of Cardano’s ADA tokens is slated for Celsius’ sell-off. As all eyes turn on the now-defunct crypto lender ‘ s plan , users worry about their investments ‘ future , questioning how the market would react to pressure imposed by this sell – off .