Will FTX Buy Celsius?
Some crypto firms have turned down their operations and some of the firms have declared themselves bankrupt, generating a possibility for acquisition.
One such company failing to survive during these tough times is Celsius.
Celsius has filed for bankruptcy and has been battling with the hearings but, it seems that the end will not be that bad for Celsius as it has put up its assets for auction.
Initially, when the news of asset auctioning was released, many crypto firms were interested in buying those assets but the one firm which was very motivated to buy these assets was FTX US.
Being one of the big players in the crypto market, FTX always had an inch over the others. Before knowing about what’s going on between FTX and Celsius let us take a look at these two companies:
Leading centralised cryptocurrency exchange FTX Exchange is known for its expertise in swaps and leveraged products. Sam Bankman-Fried, an MIT alumnus and former trader for international exchange-traded funds at Jane Street Capital, founded FTX in 2018.
The company provides a variety of trading products, including swaps, options, volatility products, and leveraging tokens.
Additionally, it offers spot markets for more than 300 cryptocurrency trading pairings.
Crypto traders of all experience levels, from novices to seasoned experts, or, in the language of the cryptocurrency industry, from rookies to whales, are attracted to FTX's broad choice of products and user-friendly desktop or mobile trading programmes.
The FTX platform provides a wide variety of order types, from straightforward market orders to trickier trailing stop orders.
Nine fiat currencies, including the US dollars, euros, British pound, Australian “ USD ”, Canadian dollar, Swiss franc, Brazilian real, Ghanaian cedi, and Argentinian peso, are supported by FTX and may be deposited and withdrawn by wire transfer.
The Hong Kong dollar, Singapore dollar, and South African rand will soon be functional, along with the Turkish lira and Japanese yen, which are also used in a limited capacity.
Users may get interested in cryptocurrency deposits or take out loans with cryptocurrency as collateral thanks to the Celsius network, a regulated lending platform that complies with SEC regulations.
By offering consumers substantial rates on their savings while keeping the advantages of more conventional shops, such as swift, fee-free transactions, Celsius aimed to draw customers.
With Celsius, current cryptocurrency holders who want to borrow money may do so without having to sell any of their holdings.
Their native token CEL, which is used to accept loans, give prizes, and make payments, serves as the system's foundation.
Additionally, Celsius runs a loyalty programme where status is based on how valuable CEL is to the user's portfolio. Members receive added incentives and interest rate breaks when they advance to the next tier.
Now we know about both the crypto firms and their functions as well. Coming back to FTX buying Celsius, it has been all massacre in recent times.
The United States Department of Justice objected to Celsius's move to begin withdrawals for a subset of clients, according to a recent release.
Due to liquidity issues, the Celsius Network first put a halt on withdrawals in June. However, the insolvent company has submitted a motion for the sale of its stablecoin holdings and a resume of withdrawal.
The Department of Justice (DoJ) objected to the motion due to Celsius's lack of transparency. The DoJ added that the decision to unfreeze withdrawals should wait until Celsius has been given a qualified independent examiner.
Celsius's move to open withdrawals was addressed by William Harrington, United States Trustee for the Department of Justice, in the filing from last week.
According to Harrington, the motion that was submitted is premature and shouldn't be approved until a report from the examiner has been filed. He clarified that Celsius aims to make impulsive payments to a number of creditors out of a large pool of debtors.
Added Effects of the Celsius Downfall:
The Celsius Network's collapse represents the worst historical failure. The collapse of the Terra ecosystem was the cause of the crypto lender's issue, which was followed by a bankruptcy filing after futile attempts to make things right.
Along with the Terra Ecosystem's demise, Investor assets valued at more than $60 billion also failed. Three Arrows Capital, which holds a sizable amount of LUNA shares, was also affected by Terra's collapse. Numerous businesses in the cryptocurrency industry were affected in a variety of ways by Terra's demise.
More About the FTX vs Celsius Clash:
Adding to the FTX Celsius Clash as reported recently, There was an FTX Celsius Deal where FTX would take over Celsius due to their poor state of finances.
According to some articles, which claimed two people with knowledge of the situation, FTX had discussions with Celsius about an acquisition but backed out due to a "$2 billion hole" in the lender's balance sheet.
One of the individuals claimed that Sam Bankman-Fried’s cryptocurrency exchange also had trouble dealing with Celsius.
One of the key indicators of the recent problematic situations in the cryptocurrency market has been Celsius's problems. Concerns regarding the lender's viability were highlighted some days earlier when withdrawals were halted due to "Extreme Market Conditions."
News that FTX wants to invest in failing cryptocurrency lender BlockFi last week suggests that it has recently been in a positive mood for acquisitions. Additionally, earlier this week, it was claimed that FTX was considering purchasing the trading software Robinhood (HOOD).
In order to comment on the report, Celsius could not be reached right away. When approached by CoinDesk, FTX declined to comment.
People can purchase, trade, and engage in financial derivatives for coins and tokens on the well-known and frequently used cryptocurrency exchange FTX.
Additionally, FTX encourages the sale of collectables and NFT. Because of U.S. Government restrictions on cryptocurrencies, the company offers dealers worldwide the chance to swap a large number of digital currencies for comparatively little money.