Celsius Network’s ETH Tsunami: Whales Sweep Over $1 Billion Through Exchanges
Recently, Celsius Network, in financial distress, has been transferring large amounts of Ethereum (ETH) to Coinbase Prime, Paxos, and FalconX, bringing a shock to the cryptocurrency community. This has sparked significant reactions within the market.
The Wealth of Transactions
On January 25, Celsius deposited 443,961 ETH, which amounts to over $984 million, to Coinbase Prime, Paxos, and FalconX wallets following a transfer of 575,081 ETH on January 24. Arkham, a blockchain intelligence firm, reported 13 transactions in an hour that sent this massive volume of ETH to Coinbase and Paxos accounts. Despite owning a substantial reserve of Ethereum, Celsius is working to repay its creditors.
Celsius’s Strategic Moves
The primary motivation behind these significant transactions is to ensure ample liquidity during Celsius’s restructuring process. The company is gearing up to distribute assets to creditors, which is set to begin in mid-February, lasting a year and being an essential step in the bankruptcy proceedings.
User Reports and Funds Management
Reports from Celsius users indicate successful withdrawals from the platform as Celsius aims to unlock Ethereum holdings by unstaking them to timely distribute them to creditors. At present, Celcius holds 540,029 Ethereum (ETH), valued at $1.2 billion. However, the company sold over $125 million worth of ETH between January 8 and 12 to meet debts and bankruptcy criteria.
Speculative Reasons for Transactions
While the exact motives for these transfers remain unstated, speculation suggests it may relate to an OTC deal, with Celsius using corporate accounts to distribute cryptocurrencies. Distribution plans involve using PayPal for U.S.-based creditors and Coinbase for those residing outside the U.S.
ETH Price Impact
Currently, Ethereum (ETH) is priced at $2,259, experiencing a 1.42% increase in the last 24 hours but a decrease of 11.33% over the week. The total amount of ETH traded has also decreased to $14.3 billion in the last day. These substantial movements are causing uncertainty among crypto investors, with speculation suggesting that ETH may further decrease in price to address significant liquidity issues.
Hot Take: How Will the Celsius Network’s ETH Transfers Affect Crypto Markets?
The massive moves of Ethereum by the Celsius Network could potentially have far-reaching implications for the digital asset and cryptocurrency markets, leading to increased liquidity concerns and impacting Ethereum prices in the near term. As the distribution of assets and ongoing restructuring continue, the market is closely monitoring the situation, anticipating how it will affect ETH and the broader crypto ecosystem.
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