Celsius Network: What would FTX buyout of bankrupt lender’s assets mean for CEL token price?
Crypto billionaire and FTX CEO Sam Bankman-Fried is reportedly eyeing up a deal that would see his companu bail out the Celsius Network after it filed for Chapter 11 bankruptcy in July.
According to Bloomberg, Bankman-Fried could bid on the bankrupt crypto lender’s assets, citing someone familiar with the matter. If Bankman-Fried does consider a bid to take over the crypto firm and can pull the deal off, it would further cement the billionaire’s position and dominance within the crypto market.
The move could also impact the price of Celsius’ native token, CEL, which was trading at around $1.52 earlier on 28 September, up 1.9% in the past 24 hours.
Interestingly, following the news around Celsius’ bankrupty earlier this year, the CEL token has been on a positive upward trend. On 15 August, CEL jumped to daily high of $4.46, doubling its price recorded the week prior.
CEL to USD
Celsius CEO steps down
Celsius Network confirmed on Tuesday in a suprise announcement that CEO Alex Mashinsky will step down from his role with the firm appointing ex-JP Morgan finance executive Chris Ferraro as its interim CEO.
Mashinsky stated his depature will take place effective immediately, but that he will continue to help the company unite to find a plan with the “best outcome” in order to help its creditors. He said:
CEL fell after the announcement of Mashinsky’s departure, but then bounced back by more 10%.
FTX wins bid for Voyager takeover
On Monday, Voyager said in a press announcement that after two weeks of a “highly competitive auction process”, FTX had won the seal of approval to take over the exchange with a winning sum of $1.422bn. The figure consisted of a market value linked to the crypto lender’s assets and an additional $111m of “incremental value”.
Bankman-Fried has gained a reputation for stepping in and saving failing crypto firms in the past, and recently claimed that FTX has at least $1bn to spend on crypto acquisitions and bailouts in an interview earlier this month, reported CNBC. Bankman-Fried said:
Following the announcement, Voyager Digital’s token, voyager (VGX) witnessed an increase in price after surging to highs of $0.74. As of 28 September, the price of the token was trading down around 9% in the past 24 hours.
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