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Celsius Network: What would FTX buyout of bankrupt lender’s assets mean for CEL token price?

By Alara Jordan

Edited by Charlie Mellor

12:14, 28 September 2022

Represenation of Celsius Network's crypto coin, CEL
FTX is reportedly considering a bail out for Celsius Network following its $1.4bn takeover of Voyager – Photo: Shutterstock

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.


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.


0.59 Price
-1.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


173.86 Price
-0.230% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652


3,500.61 Price
-0.620% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00


66,950.35 Price
-0.600% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

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: 

“I elected to resign my post as CEO of Celsius Network today. Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the Company filed for bankruptcy.”

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: 

“Saying that there’s another ballpark billion that is completely unencumbered, certainly will get you within a factor of two of the right answer.”

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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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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