Crypto lending platform Celsius once again garnered attention from the crypto community after making a statement about token distribution to creditors. On December 5, 2024, Celsius Network posted on X (formerly Twitter) that they are now unlocking significant amounts of ETH to ensure timely distribution to creditors.
Celsius significant ETH unstake for asset distribution
On January 5, 2024, the firm made another announcement on X that it would unstake the existing ETH holding, which has provided valuable staking rewards income to the firm, to offset certain costs incurred throughout the restructuring process. In preparation for any asset distribution, they added that they have started the process of recalling.
However, amid all these statements by Celsius, an on-chain analytics firm, Lookonchain, shared data highlighting that the Celsius wallet deposited over 10K ETH worth around $22.4 million to Coinbase, a US-based cryptocurrency exchange. Since November 13, 2024, the firm received 184K ETH worth around $413 million from staking wallets and also transferred to Coinbase, FalconX, and OKX.
Apart from these significant amounts of ETH transferred to the exchanges, currently, two staking wallets of Celsius hold over 634K ETH worth around $1.42 billion. On December 29, 2023, Celsius made a public announcement that those eligible for any distribution under the plan can expect to receive an email with further instructions.
Will ETH dump incoming?
Whereas, the Blockchain analytics firm Nansen found about 206,300 ETH worth around $468.5 million, in the pending withdrawal queue which belongs to Celsius. Currently, 19,906 validators are waiting for a full exit, and Celsius has already withdrawn 40,249 ETH. However, these significant withdrawals can cause a market dump of Ether but some see this as a positive move for the long-term health of the Ether markets.
In simpler terms, Celsius, a crypto lender that went bankrupt in 2022, holds a significant amount of Ethereum (ETH) in the withdrawal queue. The pending withdrawal of these funds could impact the market, with opinions divided on whether it’s good or bad for Ethereum.
