Apr 24, 2023
Gemini, Coinbase Join Auction for Celsius Network Assets
The highly anticipated auction of the assets of crypto lender Celsius Network is set for April 25 in New York. According to reports and court filings, two consortiums are vying for the assets, one backed by venture capital firm Arrington Capital, and the other by crypto exchange Gemini, fund manager VanEck, Bitcoin mining firm Global X Digital, and Plutus Lending.
The first consortium is Fahrenheit, led by blockchain investor Michael Arrington. Other participants in the consortium are Proof Group Capital Management, former Algorand CEO Steven Kokinos and investment banker Ravi Kaza. According to a report from the Financial Times, Arrington mentioned Coinbase as one of the companies backing the Fahrenheit consortium in a series of Tweets on April 22. The tweet was later deleted, said the newspaper. Coinbase declined to comment.
The second group bidding for Celsius assets is the Blockchain Recovery Investment Committee.
The two consortiums are competing with NovaWulf Digital Management, the Stalking Horse Bidder. NovaWulf’s proposal includes a direct cash contribution in the range of $45 million to $55 million, as well as the creation of a new public platform fully owned by Celsius creditors. Customers are expected to recover up to 70% of their funds under NovaWulf’s proposal.
The Fahrenheit consortium, meanwhile, is proposing the creation of a new company “with the sole goal of growing those assets to make stakeholders whole.” The new company will be run by “a group of proven crypto operators”, and hold substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio, according to Arrington’s tweets.
The auction is a major step for Celsius’ customers to recover their funds, and is an important milestone in the web3 space. The company filed for Chapter 11 bankruptcy in July 2022, after halting withdrawals citing “extreme market conditions” and rumors of insolvency.
With the auction just days away, both consortiums are ramping up their NFT marketing strategies in an effort to attract buyers. NFTs are the latest craze in the crypto space, and many companies are using them to promote their products and services. However, it’s important to be aware that not all NFTs are legitimate, and some are part of a scheme known as wash trading. To help buyers identify fake NFTs, a recent survey found that 4 out of 10 NFT sales are fake, so it’s important to do your research and be aware of the signs of wash trading.
The auction of the assets of Celsius Network is a significant event in the web3 space, and is an opportunity for buyers to get in on the ground floor of a new venture. With both consortiums offering unique proposals, it will be interesting to see which one comes out on top.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.