Celsius liquidations could exert sell-side pressure, warns Kaiko

Small cap digital assets to face “significant” pressure should bankrupt crypto lender Celsius sell or convert assets on reserve


ARTEMENKO VALENTYN/Shutterstock, modified by Blockworks


Celsius received approval to commence selling or converting a portion of its crypto holdings effective July 1, leading to speculation of a potential sell-off.

The market for digital assets within the portfolio face “significant” pressure should bankrupt crypto lender Celsius sell or convert assets on reserve to bitcoin (BTC) and ether (ETH), research firm Kaiko said Monday.

As of June 30, the company held slightly more than $600 million worth of crypto, with its largest positions consisting of approximately $300 million in BTC and $117 million in ETH. Those volumes are a fraction of the daily trading volume for the top pair of crypto assets.

The remainder? Roughly $180 million in various smaller capitalization coins, including $100 million — on paper — in its native token, CEL. That’s a problem, since there is no possibility to realize anything like that value due to an absence of any market liquidity for the token, already down 83% post-bankruptcy, Kaiko noted. 

“While there are no details about buying and selling rates or the execution venues, the market impact could be significant, especially considering liquidity for these tokens has dropped over the past year,” Kaiko said.

Market depth for CEL tokens stood at just $30,000 primarily confined to crypto exchanges OKX and ByBit, Kaiko said.

It’s estimated that the aggregated market depth for the balance Celsius’ altcoin holdings has fallen 40% since last year — a total of around $90 million in July. Most of the company’s other holdings have also lost significant value since it filed for bankruptcy in July last year. 

“Ultimately, due to poor liquidity conditions, Celsius altcoin liquidations could put pressure on crypto markets in the short term.”

Fahrenheit Holdings, which is assuming control of the assets as part of the court-approved bankruptcy plan, is expected to hold a public Twitter space on July 19 to discuss its implementation strategy.

Loading Tweet..

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


As of Wednesday, the US government had seized Sinbad’s website


Cross-chain protocol’s product development-focused unit Wormhole Labs formally launches following $225 million raise


Accredited and non-accredited investors worldwide will be able to purchase the Note starting Dec. 6 on US-regulated trading platform INX


Bitcoin’s next halving is less than five months away. History says they’re bullish but will this time be different?


Merger is set to allow the combined business to “flex between our different lines of business,” Hut 8 CEO says


Agency’s decision to start comment window earlier than expected could be bullish for spot bitcoin ETF approval in January, industry watchers say