Crypto markets turned red following a leaked ETF opinion from the SEC. It’s expected to be a busy day tomorrow as courts have permitted long-anticipated sales, potentially triggering tens of millions of dollars worth of altcoin sales. This final move in a shallow liquidity environment could intensify the negative sentiment for the mentioned altcoins.
Altcoins Might Drop
The bankrupt cryptocurrency lending firm prepares a distribution plan that will only take place with Bitcoin (BTC) and Ethereum (ETH), the two most commonly used cryptocurrencies, while Celsius was permitted to start liquidating its altcoins today.
Bankruptcy Judge Martin Glenn from the Southern District of New York approved Celsius’s move following discussions with the Securities and Exchange Commission (SEC), which stated that a series of less-used crypto tokens formed securities requiring regulatory approval for use.
Altcoins Expected to Fall
Sales will be in BTC and ETH pairs, meaning the altcoins mentioned below will depreciate against these two cryptocurrencies (and indirectly against the dollar). According to Glenn’s decision, Celsius will convert or sell all altcoins that have a high probability of being securities.
Glenn’s decision states:
“Crypto currencies, crypto tokens other than BTC and ETH, and other crypto assets associated with such tokens with Withhold or Custody accounts can sell or convert to BTC or ETH starting on or after July 1, 2023.”
The file also stated that the company was in “regular dialogue with the Securities and Exchange Commission (“SEC”) and certain state regulatory agencies to ensure that all these distributions are fully compliant with applicable federal and state laws and regulations.”
The SEC recently stated that tokens associated with Polygon (MATIC), Near (NEAR), and Cardano (ADA) were under securities regulation, taking action against major crypto exchanges such as Coinbase, Binance, and Bittrex.
So which altcoins will Celsius send for sale tomorrow?
- $70.5 million worth of CEL
- $51.8 million worth of MATIC
- $26.2 million worth of ADA
- $17.3 million worth of LINK
- $14.4 million worth of LTC
