As a new glimmer of hope for Celsius customers, the price of CEL, the native token of the troubled crypto lender, jumped more than 30% overnight.
A peak of $0.72 was reached during the trading day of December 5 before the price began to retreat. Despite giving up some of its gains from the previous day, CEL was trading 11% higher at $0.64 at press time. Similarly, CEL has risen 30.77 percent in the last week.
The unexpected increase’s cause is unknown, but a “short squeeze.” is being considered. The cryptocurrency lending platform is no longer processing withdrawal requests as of June.
Celsius, which had $12 billion in AUM at the start of the year and filed for bankruptcy in July due to the industry-wide liquidity crisis caused by the decline in cryptocurrency prices, filed for bankruptcy in July.
The company has been in Chapter 11 bankruptcy proceedings and has discussed selling some of its assets since filing for bankruptcy protection.
The news that the bankrupt crypto lender’s exclusivity period has been extended until February 15, 2023, is recent. If granted, Celsius will have a few more months to file its Chapter 11 plan.
Celsius CEL Token Clients offered ray of hope
When Celsius said it was selling the GK8 asset custody platform to Galaxy Digital, which is run by Mike Novogratz, it was good news for clients whose collateral was locked on the platform.
The Celsius Group has said that its investment manager stole money, which caused CEL stock to fall by 16%.
The bidding for Celsius’s lending portfolio will open later this month, so there may be more relief on the way then. Customers would likely be given another chance to repay and have their collateral released if another company bought the loans.
Disclaimer: The opinion expressed here is not investment advice; it is provided for informational purposes only. It does not necessarily reflect the opinion of Crypted Crypto. Every investment and all trading involve risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Source: U.today
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