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Unlocking Bitcoin's Potential: The Silver Lining in CeFi's Collapse

The Silver Lining in CeFi's Collapse

Gradually, the asset sales of the US-based CeFi failures seems to start. After the collapse of Celsius, it is likely that Bitcoin and ETH will be among the assets that will be sold off and paid to creditors. [Source]

▫️ 90 million Matic
▫️ 100 million ADA
▫️ 161K SOL
▫️ 3.3 million LINK
▫️ 1.8 million DOT
▫️ 200K Litecoin
▫️ 106K AAVE
▫️ 6.5 billion CEL (not sure if they can be cashed out into Celsius' own token)

The assets mentioned were presented to the court in December of the previous year, but it is unclear whether all of them will be sold or if some will be exempted. Nevertheless, based on the information provided, the assets hold approximately $170 million worth of tokens that are available for sale, excluding CEL tokens.

🔰Personal thoughts
First of all, from the court's point of view, Celsius's insolvency and liquidation process seems to be a clear-cut case of asset conversion through the sale of Altcoins and the purchase of Bitcoin and Ethereum. While it's unlikely that all assets will be sold simultaneously due to limited market liquidity caused by multiple market makers being absent, it is still necessary for Celsius to promptly repay a portion of their assets to their creditors. Therefore, it would be advisable to assess each portfolio carefully to minimize potential losses, particularly for alternative cryptocurrencies with weak momentum in a bear market.