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Crypto lender Celsius, which recently filed for bankruptcy, has sold off its non-Bitcoin and non-Ethereum crypto assets. The company transferred approximately $23.5 million worth of various cryptocurrencies to FalconX and OKX. This included $8.5 million worth of Chainlink (LINK) and $7.84 million worth of Synthetix (SNX). Other tokens sold off included Binance Coin (BNB), 1INCH, and Ox Protocol (ZRX). FalconX will deposit the tokens to Binance for selling, while OKX received the meme token BONE. The move may impact the valuations of these tokens and follows a court ruling that XRP is not a security.
This article originally appeared on www.newsbtc.com
Celsius Network, a leading decentralized finance platform, has been making waves in the crypto space lately. The platform, known for its high-interest rates on digital assets, has been witnessing a surge in users and deposits. While this may seem like good news for Celsius, it could spell trouble for three other cryptocurrencies – Binance Coin (BNB), Chainlink (LINK), and Synthetix (SNX).
Celsius offers an attractive alternative to traditional banking by allowing users to earn interest on their digital assets. Users can deposit their cryptocurrencies on the platform and earn up to 17.78% annual interest. This has proved to be a lucrative opportunity for crypto enthusiasts looking to grow their holdings.
Celsius uses a unique business model where it lends out the deposited funds to institutional borrowers and shares the interest earned with the users. This enables Celsius to provide higher returns compared to traditional banks, but it also exposes it to market risks.
One of the key factors behind the success of Celsius is the popularity of its native CEL token. The token is used within the Celsius ecosystem to give users additional benefits such as higher interest rates and reduced loan interest rates. As more users flock to Celsius and engage with the CEL token, its demand and price increase.
So, why could this be a problem for BNB, LINK, and SNX?
Firstly, Celsius offers an alternative means of earning interest on crypto assets, potentially drawing investors away from Binance Coin. BNB, the native token of the Binance platform, is used for various purposes such as trading fee discounts and participation in token sales. If users find Celsius more profitable and rewarding, they may choose to invest in CEL tokens instead of BNB.
Secondly, Celsius offers interest payments in a variety of cryptocurrencies, including Chainlink and Synthetix. For example, users can earn interest on their LINK and SNX tokens by depositing them on the Celsius platform. This could reduce the demand for these tokens as users opt for the convenience of earning interest directly within the Celsius ecosystem.
Lastly, Celsius has been rapidly expanding its services and user base, attracting new customers who were previously not invested in cryptocurrencies. As these new users become more familiar with CEL tokens, they may choose to allocate more of their funds into CEL instead of other cryptocurrencies like BNB, LINK, and SNX.
While Celsius’s success is certainly commendable, it remains to be seen how it will affect the value and demand of BNB, LINK, and SNX tokens in the long run. As more users flock to Celsius for its attractive interest rates and benefits, the impact on these three cryptocurrencies could be more pain than gain. Crypto enthusiasts and investors should closely monitor how these dynamics unfold and make informed decisions based on their risk appetite and investment goals.
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