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Celsius's CEL Token Suddenly Went up 15%, This Might Be Reason

Tue, 12/06/2022 - 15:20
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Tomiwabold Olajide
CEL is likewise up 30.77% in past seven days
Celsius's CEL Token Suddenly Went up 15%, This Might Be Reason
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CEL, the native token of embattled crypto lender Celsius, suddenly jumped more than 30% in a new ray of hope for Celsius clients.

The rise yielded intraday highs of $0.72 on Dec. 5 before a retreat occurred. At the time of writing, CEL was trading at $0.64, up 11% in the last 24 hours after erasing some of the previous day's gains. CEL is likewise up 30.77% in the past seven days.

The reasons for the sudden rise remain unknown but may be due to a "short squeeze." Since June, the crypto lender has stopped allowing withdrawals on its platform.

Celsius, which had $12 billion in assets under management earlier in the year, went bankrupt in July after the collapse in cryptocurrency prices triggered a liquidity crisis for the whole industry.

Since seeking Chapter 11 bankruptcy protection, the company has been going through bankruptcy proceedings and has been talking about selling some of its assets.

In recent news, the bankrupt crypto lender has been granted an extension on its exclusivity period until Feb. 15, 2023. With the court's approval, Celsius would have a few more months to submit a Chapter 11 restructuring plan.

Clients offered ray of hope

Clients on the Celsius network who had their collateral locked on the platform were given some cause for hope after Celsius announced the sale of its asset custody platform, GK8, to Mike Novogratz-owned Galaxy Digital.

Celsius Accused Its Money Manager of Theft, CEL Loses 16%

More relief may be on the way later this month as bidding will open for Celsius's lending portfolio. If another company purchases the loans, clients would probably have a chance to repay and then have their collateral released.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.