CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

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

Share this article
In this article:
CEL/USD
CEL/USD
1.8300 USD
-0.0108 -1.020%

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
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.

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.

BTC/USD

17,153.35 Price
+1.030% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 66.00

XRP/USD

0.39 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00318

ETH/USD

1,273.40 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.50

DOGE/USD

0.10 Price
+2.460% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0015769

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%. 

What is your sentiment on CEL/USD?

1.8300
Bullish
or
Bearish
Vote to see Traders sentiment!

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.

Related reading

Rate this article

Share this article

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.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Cryptocurrency news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading