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Ripple expresses interest in buying Celsius assets

Ripple and Celsius Network

Ripple Labs, the blockchain payments company behind the XRP token, has shown interest in purchasing assets of bankrupt crypto lender Celsius Network.

According to a company spokesperson, Ripple is interested in learning about Celsius and exploring whether it could be relevant to Ripple’s business. When asked if Ripple intended to fully acquire Celsius, the spokesperson refused to comment.

While a full-blown acquisition has not been confirmed, CEL, Celsius’ native utility token, rose by 23% on 10 August 2022 in response to the news.

Celsius was one of the victims of the harsh crypto market turmoil. Celsius froze user withdrawals in June, citing “extreme” market conditions. It then hastily cleared debts accrued on various DeFi loans, reclaimed its collateral, and finally filed for bankruptcy last month, listing a $1.19 billion deficit on its balance sheet. The chances of the company’s creditors getting any of their money back look bleak.

Ripple, on the other hand, has continued to grow despite the crypto market turmoil. After buying back stock from its Series C raise in December 2019, Ripple was valued at $15 billion in January. According to a July company report, it sold $408 million in XRP from April to June, a significant rise since last quarter.

Ripple has not attempted to strike any such major deals before.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user’s own risk.

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