Celsius may be finally looking at a light at the end of the tunnel after a week of turmoil and the threat of liquidation.
Rumors currently gracing the crypto waves currently have it that Celsius, the embattled DeFi platform, could be in for a takeover by another party with deeper pockets. Celsius has spent the last week trying to keep afloat and avoid liquidation after BTC prices fell and took it with them.
The platform halted withdraws and has been working on topping up its collateral to prevent losses that might occur if its holdings get liquidated. The situation was made worse by BTC’s price drop to below $20k. The company has also faced a threat of a class action lawsuit for halting withdrawals.
How It Would Work
Now, there are some rumors that another entity may be interested in bailing out Celsius. Basically, the company in question would have to use its resources to provide more collateral and liquidity to the platform. Withdrawals and transfers would be resumed, and the Celsius Network would operate normally. It would also take over assets currently owned by Celsius.
Famous Twitter influencer Alfred says:
“There are some rumors circulating in the market about a possible Celsius bailout. A bailout in the form of a full acquisition of all Celsius assets and liabilities could be a huge win for Celsius customers as withdrawals could restart using the larger company’s balance sheet.”
There are some rumors circulating in the market about a possible Celsius bailout. A bailout in the form of a full acquisition of all Celsius assets and liabilities could be a huge win for Celsius customers as withdrawals could restart using the larger company's balance sheet.
— Mike Alfred (@mikealfred) June 21, 2022
However, the rumors don’t hint at which company among the numerous crypto entities in the industry may be in talks with Celsius. Still, these reports of a possible bailout to a company on the brink of total collapse are a source of hope for many investors – especially those whose digital assets have been locked up in Celsius.
Celsius was trading at $0.74 yesterday and is now up almost 100%, touching the intraday high of $1.63, currently trading at $1.38.
Deal Not Guaranteed
At this point, investors need to remember that deals depend on how the two entities engage and if they reach an agreement to that effect. In this case, while there are rumors of a possible deal in the process, it’s not guaranteed.
Success in this regard would create a better environment for the CEL to thrive as investor confidence would be boosted. The community is eager to find out more details of the deal and identify the “big money” entity in question.