Celsius, the bankrupt crypto lender, has recently announced its plan to convert all customer “altcoins” to bitcoin (BTC) and ethereum (ETH) in an upcoming token sale. Scheduled to begin on July 1, 2023, the sale will involve over $215 million worth of coins, including CEL, ADA, LINK, LTC, and more.
The Conversion of 15 Different Tokens to BTC and ETH
After announcing its acquisition by Novawulf Digital Management in mid-February 2023, Celsius has now filed its reorganization plan, which includes the conversion of customers’ altcoin balances to BTC and ETH on July 1. This conversion will apply to all altcoins, except for those held in custody and withhold accounts.
In an official statement on Twitter, the Celsius team confirmed the conversion, stating, “Starting July 1st, Celsius will be selling all altcoins from all customers (except custody and withhold accounts) and will be converting them into bitcoin and ethereum.” The tokens involved in this transition include CEL, MATIC, ADA, LINK, LTC, DOT, BCH, AAVE, UNI, XLM, SOL, EOS, FIT, SRM, and BNB. It’s worth noting that some of these tokens have faced scrutiny from the U.S. Securities and Exchange Commission (SEC) in certain legal cases, with classification as securities.
The token sale will inject over $215 million worth of these coins into the market, further contributing to the existing selling pressure. However, due to the distribution across 15 different cryptocurrencies, the impact of the sales is expected to be moderated. The largest portions of the sale will involve approximately $70 million worth of CEL and around $52 million worth of MATIC.
Celsius’ native token, CEL, similar to FTX’s FTT token, has experienced a significant decline following the company’s bankruptcy. With an 80.8% decrease in value over the past year and a 51.5% decline in the last 30 days, CEL’s prospects have diminished. It’s worth mentioning that it has been a year since Celsius suspended withdrawals and filed for bankruptcy protection.
Approval from the bankruptcy court is necessary for the altcoin-to-BTC-and-ETH conversion plan. However, a group of borrowers represented by attorney David Adler from McCarter & English intends to oppose the plan, claiming that it violates consumer lending laws. Adler shared his concerns on Twitter, stating, “This proposed treatment violates every consumer lending law out there.”
What are your thoughts on Celsius’ decision to convert altcoins to bitcoin and ethereum? How do you believe this move will impact the broader crypto market? Feel free to share your opinions and insights on this subject in the comments section below.
Frequently Asked Questions (FAQs) about token sale
What is Celsius’ plan regarding the conversion of altcoins to BTC and ETH?
Celsius, the bankrupt crypto lender, has announced a token sale where they will convert all customer “altcoins” to bitcoin (BTC) and ethereum (ETH). This conversion will take place starting on July 1, 2023.
Which altcoins will be converted in Celsius’ token sale?
The altcoins that will be converted to BTC and ETH in Celsius’ token sale include CEL, MATIC, ADA, LINK, LTC, DOT, BCH, AAVE, UNI, XLM, SOL, EOS, FIT, SRM, and BNB.
How much worth of altcoins will be sold in Celsius’ token sale?
Over $215 million worth of altcoins, including CEL, ADA, LINK, LTC, and others, will be sold in Celsius’ token sale.
Will the token sale impact the crypto market?
Yes, the token sale is expected to contribute to the selling pressure in the market. However, since the sale involves 15 different cryptocurrencies, the impact is anticipated to be moderated.
Will the conversion of altcoins to BTC and ETH be approved by the bankruptcy court?
The conversion plan needs approval from the bankruptcy court. However, a group of borrowers represented by attorney David Adler intends to oppose the plan, arguing that it violates consumer lending laws.
How has Celsius’ native token, CEL, performed recently?
CEL has experienced a significant decrease in value, with an 80.8% decline over the past year and a 51.5% decline in the last 30 days. This week marks one year since Celsius suspended withdrawals and filed for bankruptcy protection.
More about token sale
- Celsius Official Twitter Account
- U.S. Securities and Exchange Commission (SEC)
- Novawulf Digital Management (Note: There is no specific reference available for Novawulf Digital Management as of my knowledge cutoff in September 2021. Please search for the latest information on this company.)
- McCarter & English (Note: The website of the law firm representing the group of borrowers mentioned in the text.)