The Celsius Network crypto lending platform collapsed in 2022. Since then, it has been trying to find a way to repay its customers. In this context, an auction will take place in order to find buyers for the assets of the crypto lender. An anonymous source revealed that two major crypto exchanges are preparing to participate in this auction. Here is what it is.
Coinbase and Gemini, well positioned to win the auction
The Celsius Network file is evolving well after the proposed agreement for customer reimbursement. The Coinbase and Gemini exchanges would be ready to make an offer to buy the crypto lender. The source reporting the information pointed out that the two crypto firms are the most likely to succeed in buying up Celsius’s assets. For good reason, they are two well-established crypto service providers.
The two new bidders, unlike the old ones, have the resources to extract more value through their activities. They will therefore not have no need to liquidate a large portion of Celsius’s assets. That said, Coinbase and Gemini are expected to present their bids during an auction scheduled for Tuesday, April 25, 2023.
information has been reported in a court filing. Also, the auction will take place at the New York offices of Kirkland and Ellis. This is the law firm handling Celsius’ bankruptcy process.
The other bidders for the takeover of Celsius
Coinbase and Gemini will participate in the auction alongside bidders NovaWulf, Fahrenheit and Blockchain Recovery Investment Committee. NovaWulf is an asset manager and is the ” stalking horse bidder in the Celsius folder. Indeed, the company is Celsius’ top bidder, setting the bar for others ahead of the auction.
The manager has proposed a plan for Celsius Earn’s creditors according to the amount of their deposit. For less than $5,000 deposited, creditors will receive approximately 70% of their funds in the form of liquid cryptos. For more than $5,000, they will receive liquid cryptos and tokenized shares on the new Celsius platform. The latter belongs 100% to the creditors.
Celsius collapsed last year in the midst of a bear market. This year, the crypto market seems to be doing better, with an ongoing uptrend. Incidentally, analyst Raoul Pal recently predicted that the crypto industry will soon have one billion users.
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