After the Celsius Network’s determination final month to freeze all transactions and withdrawals, the entire cryptocurrency market plummeted right into a deep and gloomy sinkhole.
This week there was some excellent news, when Celsius paid off its remaining $41.2 million debt to the DeFi protocol MakerDAO. This fee allowed Celsius to launch $448 million in collateral.
However, it seems that this would be the solely optimistic growth from the U.S. crypto lender within the coming days or months.
After weeks of conjecture and rumour, Celsius’s authorized counsels have formally knowledgeable regulators that the cryptocurrency lender has filed for Chapter 11 chapter safety.
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CEL Loses Half Its Value After Bankruptcy News
Following the disclosure of chapter, CEL, the native cryptocurrency of Celsius Networks, misplaced half of its worth from its intraday excessive of 95 cents and all the way down to 45 cents.
In the final month, there was a rise within the variety of cryptocurrency-related failures. After the crypto hedge fund Three Arrows Capital and the crypto lender Voyager Digital, Celsius turns into one other domino to fall within the chapter abyss.
Since June 20, the value of CEL has almost grown four-fold as a consequence of what seems to be a fervor brought on by futures and derivatives merchants. CEL rose from $0.28 on June 15 to $1.56 on June 21, a 456 % improve in comparison with the market’s 12.36 % improve throughout the identical timeframe.
In May, Celsius had solely $12 billion in belongings, which was about half of what it had at first of the 12 months. After that, the agency ceased revealing its belongings underneath administration (AUM).
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BTC complete market cap at $378 billion on the day by day chart | Source: TradingView.com
Celsius Was A Crypto Industry Powerhouse
CEL stays underneath strain to the draw back because it trades roughly 80% under its April 2018 excessive of $8.
At its prime, Celsius was a cryptocurrency trade titan. It had greater than 1.7 million customers worldwide and belongings of greater than $20 billion. The firm achieved success because of providing buyers yields within the vary of 18 %.
What then occurs to the CEL token? The worth of CEL has decreased considerably since Celsius ceased operations. This doesn’t, nevertheless, indicate that the token will plunge to zero. Indeed, it may garner renewed consideration from pump-and-dump merchants.
Meanwhile, Celsius asserts that it has $167 million in prepared money, which might be used to assist some operations “during the reorganization process.”
Featured picture from CoinQuora, chart from TradingView.com