Celsius will unstake $470M in Ethereum
Hello and Namaste Everyone,
Celsius which was one of the lending platforms has confirmed its bankruptcy. The company filed for Chapter 11 in 2022 and now it's going through the repayment process. There were multiple companies following chapter 11 and the year 2022 has shown us multiple situations of bankruptcy. We are in 2024 but the year 2022 was not good for us because of various bad incidents. Companies like FTX, Celsius, Luna, and many on the list had done a lot of damage in the market and all this was done in the same year which was 2022.
These companies have started paying back the money to their investor by liquidating their assets and even FTX has done it in the past. Now Celsius is about to stake the funds worth $470 million in Ethereum coin. Approximately 206,300 ETH coins will be untakes and this will increase the liquidity in the market so a price dip is expected. A little turbulence is expected in the market because when people have more liquidity then many of them will be selling out to cash out the profit or the capital investment whatever it is.
Celsius has announced this update on Twitter today and they have created a thread by sharing more information about it. It is good for the people who will be getting the money and slightly bad for the market because some sort of dump might happen in the market.
This is the time when the market is struggling but it is not in bad shape as the price of Bitcoin is already around 45K USD. It is not the bull run cycle but we need to note that we are going to have the Bitcoin halving in the next few months which is expected to happen in April month. This event is special for the crypto community because after the halving reward will be cut by 50% for the minus. This has been seen that after the halving event, the price of Bitcoin has reached another all-time high so it is expected to happen this year and almost probably next year.
Though I expect some price correction or some dip in the price for Ethereum after this unstake I do not think it is going to be so big. We cannot predict how it will be and it depends upon the sentiment of the people who will be getting these liquid etherium and what they are going to do with their ETH holding. All I know is that Ethereum is a leading altcoin or we can say it is the second rank coin in the crypto market as per the market cap. It's a solid project and the token itself has got a massive demand in the market because the chain has got so many projects working on this.
Talking about Celsius it was a nice platform but the market situation made it difficult for this company to survive and the Lunar incident along with FTX also added more problems in their life. Indirectly multiple companies were affected by these tragic incidents in 2022 and because of these many companies had to shut their operations and file for bankruptcy. Crypto is a different market where the bull run is not as big as the bearish market is and this is why these companies need more funds to survive in the bear market.
Thank you so much
Stay Safe
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