Celsius Network made its first restricted withdrawals on June 13th, and it took nearly a month for the company to come forward and file for bankruptcy. It effectively ended market speculation about the company’s solvency. Because of this, CEL’s price fell as low as $0.3780. However, the CEL price has recovered more than 100% to trade at $0.7907.
Celsius (CEL) Price Review
CEL price opened at $0.7781, and it fluctuated between a low of $0.6929 and a high of $0.8244 during the day. So far, the price has increased by approximately 35% in the last seven days. The current Celsius (CEL) price is $0.7916, and the 24-hour trading volume is $5.87 million.
Despite a weekly gain, Celsius has dropped 1.25% in 24 hours. CoinMarketCap now ranks #141, with a live market cap of $189 million, a total circulation quantity of 695.6 million CEL coins, and a circulating supply of 238.86 million CEL coins.
Updates on the Celsius Bankruptcy
FTX Exchange Backed Out of Acquiring Celsius
The FTX exchange backed out of acquiring Celsius a few weeks ago after discovering that Celsius was short of $2.2 billion on its balance sheet. The release of the bankruptcy report on Tuesday weighed on the Celsius Network’s native token and dragged CEL prices lower.
A slight uptrend in CEL was triggered following the comments made by the company’s lawyer. According to him, the 1.7 million registered Celsius users spread across the globe in 100 countries have given up ownership of the cryptocurrency they deposited into “Earn & Borrow Accounts.”
Since the coins have been transferred to the Celsius firm, the company is now free to do whatever it wants with them. It can use, sell, pledge, or re-hypothecate these coins. Hence, the cryptocurrency experienced some relief and found support, causing its prices to rise.
Remarks by Alex Mashinshky on Bitcoin Mining to Pay Debts
According to Celsius’s CEO, Alex Mashinshky, the company can sell Bitcoins to pay off its debts. The company has subsidiary companies that operate mining operations that mine BTC. Celsius expects to generate approximately 15,000 BTC by 2023, which will aid in debt repayment and the resolution of the bankruptcy case.
Furthermore, two top executives of Celsius Network issued statements this week regarding the issues that led to the company’s bankruptcy.
Timothy Cradle, the former director of finance and compliance, blamed the Celsius bankruptcy on “poor risk management.” He also stated that the company was not investing in compliance, which contributed to the company’s failure. These statements put bearish pressure on the native token CEL,, and the crypto began to fall.
Chapter 11 Petition Underpins Celsius CEL
The company has already filed a voluntary Chapter 11 petition. The company is permitted to continue operations while restructuring its obligations under Chapter 11 bankruptcy. It’s extending some hope to investors as American Airlines, Delta, Hertz, Marvel, and General Motors are a few companies that have recovered from this stage of bankruptcy. Given these developments, the company was given some breathing room, and it’s native token CEL began to rise in value to trade at $0.791.
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