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.
FAQs
Who will buy Celsius Network?
Celsius Network, a crypto lender, went through bankruptcy proceedings, and various reports suggest potential buyers or entities involved in its acquisition:
Fahrenheit Consortium: Fahrenheit, a crypto consortium, successfully won a bid to acquire the assets of Celsius Network. The acquisition was valued at around $2 billion, and the consortium aimed to restructure Celsius Network through a bankruptcy proceeding.
Proof Group: As of November 2023, Proof Group, part of the consortium that owns Celsius, is reportedly considering the acquisition of the bankrupt FTX crypto exchange.
What is the meaning of Ripple in finance?
In the realm of finance, “Ripple” refers to both a payment protocol and a digital currency. Ripple’s payment protocol is designed for fast and cost-effective cross-border transactions. It operates as a real-time gross settlement system, currency exchange, and remittance network. The technology enables financial institutions worldwide to transfer funds efficiently.
Could XRP reach $100?
The consensus among these sources suggests that a $100 price for XRP is not within the immediate or short-term projections. Investors must conduct thorough research and consider multiple perspectives before making any financial decisions in the volatile cryptocurrency market.
Is Ripple a good investment?
Before considering XRP or any cryptocurrency as an investment, it’s crucial to conduct thorough research, consider risk tolerance, and consult financial experts. Cryptocurrency investments are inherently volatile, and prices can be influenced by market sentiment, regulatory developments, and technological changes.
