Ripple

Will Ripple Buy Assets From Bankrupt Crypto Lender – Celsius Network? Know The Truth

Written by: Elena R

Written by right arrow

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

  • author twitter

Aug 11, 2022

news-image

A representative for San Francisco-based cryptocurrency company Ripple Labs said on Wednesday that the company might be the ‘potential buyer of the assets of bankrupt cryptocurrency lender Celsius Network, according to a Reuters report.

The blockchain.com payments company is reportedly interested in Celsius’ assets, although the specific plans are unclear. However, neither company has made an official statement about the interest in purchasing Ripple Celsius assets to date.

The spokesperson also said that Ripple “is actively looking for M&A opportunities to strategically scale the company” as it continues “to grow exponentially” through the market downturn.

He said, “We are interested in learning about Celsius and its assets, and whether any could be relevant to our business. Ripple has continued to grow exponentially is actively looking for M&A opportunities to strategically scale the company.”

Celsius and its bankruptcy

In June, lending competitor Nexo made a comparable approach, and cryptocurrency exchange FTX briefly entered the race as well. The celsius network declared bankruptcy last month. This came after it stopped user account withdrawals and transfers back in June.

Celsius stated it had assets worth about $4.3 billion when unveiling its reorganization plans. It declared liabilities of $5.5 billion, assets of $4.3 billion, and $600 million in CEL tokens, which are each worth $170 million.

The purchase of Celsius assets by ripple could benefit small-scale investors by providing them with financial relief. In order to meet its financial needs, Celsius has previously stated that it was thinking about selling assets.

Entrepreneur alex mashinsky launched Celsius in 2017, and during its most recent venture round, it was valued at more than $3 billion.

“This is the right decision for our community and company. I am confident that when we look back at the history of Celsius, we will see this as a defining moment,”  Mashinsky said following the bankruptcy filing. 

Show More

Was this writing helpful?

dislikeimage No myImage Yes

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Related Articles

Back to top button