CEL Token Dips Over 21% After the Company Filed for Chapter 11 Bankruptcy Protection
- The CEL token gave users the ability to pay interest on their loans at a discount.
- Following the dip, the ERC20 token has a market capitalization of approximately $225,417,786 and a 24-hour trading volume of $38,146,092.
Celsius native CEL has recorded a sharp decline in the early Asian trading times. According to our market data, the CEL token is down approximately 24.89 percent as of publication time. The dip has been attributed to news that the company has filed for Chapter 11 bankruptcy protection.
The digital asset is trading around $0.5439, 93.1 percent down from its all-time high. Unfortunately, the dip is likely to continue in the foreseeable future as more headwinds are predicted.
Moreover, the company is being investigated by several regulators around the world including Texas. Commenting on the bankruptcy news, Joseph Rotunda, director of enforcement at the Texas State Securities Board, said the news was imminent.
“Unfortunately, this was expected. It was anticipated. It does not, however, stop our investigations. We will continue investigating the company and working to protect its clients, even through its insolvency,” Rotunda said.
CEL Token and Market Outlook
Following years of success by many crypto-related companies, the ongoing bear market has left several crypto firms exposed to harsh conditions. On June 13, 2022, Celsius paused all withdraws, Swaps, and transfers between accounts. Since then, the company has been restructuring its business model to survive the tidal waves.
Notably, the CEL token is an integral part of the Celsius ecosystem based on the assigned utilities. According to the Celsius Network whitepaper, the CEL token has four main uses.
Among them, the CEL token offers users the ability to become a member of the Celsius platform and community. Additionally, the token gave users the ability to deposit their cryptocurrencies in the Celsius wallet
Most importantly, the token gave Celsius users the ability to apply for dollar loans with cryptocurrencies as collateral. Last but not least, the CEL token gave users the ability to pay interest on their loans at a discount.
Following the dip, the ERC20 token has a market capitalization of approximately $225,417,786 and a 24-hour trading volume of $38,146,092.
From a technical point of view, the CEL token is hanging precariously on a support level formed before the 2020-2021 bull market. Should the dip continue as forecasted, then the token could be looking at sub $0.1 in the near future.
Reportedly, Celsius has highlighted a deeper bankruptcy challenge facing several crypto firms.
“The treatment here seems to be that the customer’s crypto is actually the company’s property, and as an unsecured creditor, you don’t get your bitcoins back,” Levitin told CNBC, adding that he doesn’t think Celsius is the last of the crypto bankruptcies. “The tide is still going out, we’re just waiting to see how far it goes.”
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
