Investors are treading water, with anxious eyes trained on the horizon. There’s an expected sell-off that could throw the market into turbulence: ADA, SOL, and MATIC are bracing for impact.
Here’s why these crypto assets have landed in the crosshairs of trading platforms Celsius and Robinhood, and what investors should anticipate in the coming days.
Two varieties of sell-off: Celsius vs. Robinhood
The buzz in the crypto community has been that Celsius and Robinhood are set to make a significant move. But it’s important to understand that the two platforms’ strategies are not identical.
Celsius operates with a more flexible approach and might stretch its sell-off across a few months starting July 1st.
In contrast, Robinhood is sticking to a rigid timetable. The trading platform has drawn a line in the sand for June 27th. Immediately after 6:59 PM ET, they plan to liquidate all remaining holdings and credit the proceeds to their users’ accounts.
The operation, managed by Jump, is expected to be swift. Fortunately for investors, Robinhood users have already withdrawn around half of the platform’s holdings in the last fortnight.
What remains, according to the most recent data, is an estimated $18 million of MATIC, $26 million of SOL, and although ADA’s wallets are harder to pin down, a conservative guess puts their value around $30 million.
These figures may appear daunting, but they are, in fact, markedly lower than the predictions circulating on social media. Speculation is rife about how Jump will choose to execute the operation.
They could sell over-the-counter (OTC), hedge on perpetuals after taking it onto their books, deposit to crypto exchanges, or use a combination of these tactics. Investors will be watching order interests and on-chain movements closely to discern Jump’s chosen strategy.
The Celsius perspective: A diverse portfolio
Meanwhile, Celsius has a different story. Their SOL holdings amount to a relatively modest $2.5 million. However, their ADA and MATIC holdings are worth attention, with the former estimated at $26 million and the latter, as of their April-end filings, valued at $60 million. However, only $14 million of MATIC could be located.
The intrigue does not end there. The Celsius portfolio contains several other crypto assets that could provide an intriguing opportunity for shorting. As the clock ticks down, the key question is: are these sell-offs factored into the current market prices?
In the days since the sell-off announcement, ADA, SOL, and MATIC have not fared well. They’ve lagged behind the market and their peer group, a clear sign that investors are pricing in the impact of the upcoming delistings. However, astute investors will be watching Jump’s immediate moves post the deadline. If the crypto assets don’t appear on crypto exchanges, a market rally might well be on the cards.
In this scenario, SOL seems to be the most insulated from the impact of the sell-off due to Celsius’s relatively limited holdings. As the sun sets on June 27th and the first week of July rolls around, the market’s landscape could drastically change.
