The organization that created XRP, Ripple, has confirmed its intention to expand through a number of mergers and acquisitions. The assets of Celsius, the crypto fund lender that has been in bankruptcy for some weeks, would be one of its targets.
Ripple competing to purchase Celsius assets?
The American business, known for its XRP cryptocurrency, is keen to acquire Celsius’s assets. Recall that Celsius had to declare bankruptcy because of a shortage of money as a result of poor risk management, particularly an excessive exposure to the Terra Luna environment.
Regarding this takeover, a representative for Ripple stated:
- Ripple is interested in learning more about Celsius and its assets, and if any might be relevant to our business. The company, however, did not answer clearly when asked about the takeover of the company as such.
Cash, other cryptocurrencies, CEL tokens, and numerous digital assets including loans, a bitcoin mining operation, etc. are listed as the assets of the lending business in the bankruptcy filing paperwork. But we must not overlook the 1.19 billion dollar debt the business still owes to a number of creditors, who will undoubtedly never see their money again.
Not only is Ripple interested in Celsius, but its primary rival Nexo has also proposed the notion of purchasing the struggling company’s assets. Even if just temporarily, nothing substantial has yet been accomplished. As several sources disclosed in June, the financial bank Goldman Sachs would also be interested in purchasing these properties.
The CEL token increased by more than 30% in 24 hours after the news of a potential takeover of Celsius assets was announced. Its current price of $2.37 is the highest it has been since April, before the drop and the revelation of Celsius’ worries.
Even with the SEC Ripple is still expanding.Thus, Ripple’s expansion plan includes the intention to purchase Celsius’s assets. In order to strategically scale the business, the corporation claims to be “actively investigating merger and acquisition options.”
The SEC (Securities and Exchange Commission), the American regulatory watchdog, and Ripple are still at odds over a number of issues, most notably whether or not XRP coins qualify as securities tokens and hence need to be registered with the SEC. Ripple and its token are suffering severely as a result of this case, which has been ongoing for almost two years.
We can see that XRP is obviously lagging the market when we compare the performance of other assets throughout the most recent bull market. When competing against Ethereum, Solana, or even Avalanche, XRP made little headway during this bull market and was severely harmed by the May cryptocurrency crisis.
Ripple, who appears to be in a strong position to prevail in this legal dispute, however, may soon see a resolution of the problem. Making this choice would enable the business to concentrate on its advancement and seek its expansion.
The business recently released positive results for the second quarter of 2022, which is still challenging for the majority of the crypto industry. Indeed, many companies have filed for bankruptcy in the latter, and numerous participants in the industry have announced layoffs.
According to reports, Ripple sold XRP for close to $409 million, up from $273 million in the first quarter. This gain of almost 50% is extremely remarkable, especially given the state of the market. In spite of the situation of the industry, Ripple does continue to grow and create new alliances.
It contacted the Lithuanian firm FINCI in May of last year to secure payments between businesses as well as money transfers from people owing to the On-Demand Liquidity (ODL) platform provided by Ripple. Additionally, this technology solution will be coupled with FOMO Pay, a Singaporean fintech that will use it to facilitate speedy and inexpensive cross-border payments.
As a result, Ripple keeps expanding thanks to its quick and affordable money transfer options for businesses. There is little doubt that Ripple will experience a new increase in the price of its token if it succeeds in its legal battle with the SEC. The upcoming Ripple announcements and its evolution will be attentively monitored by us.