With the crypto market holding its breath, a company is preparing to drop a bombshell that could resonate in the digital currency corridors. Celsius Network, a bankrupt crypto lender, plans to sell $215 million in altcoins, including MATIC, on July 1, marking an unprecedented liquidation. The upcoming selloff seems set against greater regulatory pressure on crypto in the US. This could have a significant impact on the market.
These altcoin sales continue, including MATIC
As you follow on Kriptokoin.com, the US’s strict regulatory pressure on the market continues. In this financial maneuver that came in the midst of this, Celsius Network will convert a wide variety of altcoins such as MATIC, ADA and LINK to Bitcoin (BTC) and Ethereum (ETH). Celsius said, “Celsius will sell all altcoins from all customers (except Custody and Custody accounts) starting July 1. It will also convert them to Bitcoin and Ethereum,” he said. The altcoins listed for this sale are:
- Celsius (CEL)
- Polygon (MATIC)
- Cardano (ADA)
- Chainlink (LINK)
- Litecoin (LTC)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- AAVE (AAVE)
- Binance Coin (BNB)
- Uniswap (UNI)
- Stellar (XLM)
- Left (LEFT)
- EOS (EOS)
- FTX Token (FTT)
- Serum (SRM)
With Celsius Network’s focus on its plan, crypto enthusiasts began to ponder the fate of their investments. How the market will respond to this enormous selling pressure is an important question. Also, it remains to be seen whether this will lead to an altcoin crash. The impact of specific altcoins on investor sentiment and broader market trends is unclear.
Will MATIC and these altcoins crash?
Celsius Network’s altcoin portfolio includes several notable assets. Among them, the CEL token, Celsius Network’s native token worth approximately $70.5 million, is the largest. He hasn’t been kind to CEL this year. The altcoin value is down almost 80.8%. Therefore, the impending purge threatens to push it further down the slippery slope. The million-dollar question on investors’ minds is how this sale will affect CEL’s future price trajectory and overall sentiment surrounding the token.
CEL price performance / Source: TradingViewAnother altcoin on target is Polygon (MATIC). Celsius Network holds approximately $51.8 million worth of MATIC. So, MATIC is another heavyweight contender. The token has lost more than 25% over the past week. Now, with the upcoming sell-off, MATIC’s price and market sentiment hangs dangerously in balance.
MATIC price performance / Source: TradingViewAlso, Cardano is another major altcoin affected by Celsius Network’s liquidation plan. Celsius Network holds approximately $26.2 million worth of ADA tokens. The market is anxiously awaiting the impact on ADA’s value, especially after the recent drop of over 17% due to regulatory concerns.
ADA price performance / Source: TradingViewAltcoin sales will likely resonate beyond these three tokens in the broader crypto market. Other major altcoins held by Celsius Network are also facing potential selling pressure, including Chainlink, Litecoin, Polkadot, Bitcoin Cash, Aave and Binance Coin. Therefore, the results of these sales may undermine investor confidence.
Get ready for impact!
This event may seem like a doomsday scenario for altcoin holders. However, it should be noted that the market is not a one-way street. The dynamics of crypto trading are inherently unpredictable. No single event, no matter how important, determines the fate of the market. Therefore, the key to navigating these turbulent waters is to make decisions with extremely clear and thorough research.
As a result, the planned altcoin sales could be a pivotal moment in the history of cryptocurrencies. This underscores the need for robust regulatory frameworks, transparency and investor protection in the crypto ecosystem. It is not yet clear whether Celsius Network’s unprecedented move will trigger an altcoin collapse or just create a surge in the vast crypto ocean. But one thing is for sure: July 1 will be a day to watch.
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