After $2.5 billion crediter repayment, Celsius Token Jumps 300%
One month after Celsius Network began a $2.5 billion payback to its creditors, CEL, the native token of the network, saw an incredible rise in value—more than 300% This substantial increase highlights the positive response of the market following Celsius’s attempts to resolve its bankruptcy issues.
By August 26, Celsius had returned 251,000 creditors $2.53 billion according to court records. The CEL token had value of $0.16 at the point of return. But on September 23, the tokenâ€TMs’ price shot to $0.65, an indication of a three hundred percent growth in a short period. Even with its amazing rebound, the token still remains well behind projected June 2021 high value of $8.05.
With Celsius distributing around 84% of the total debt owed, the payback schedule came out to be $3 billion. While most creditors have their money, many with lesser claims have not yet acted. Of the remaining creditors, 41,000 have claims ranging from $100 to $1,000 while approximately 64,000 have digital assets valued less than $100. The petition suggests that the relatively little amounts might not be enough to motivate these creditors to pursue the necessary asset retrieval protocols.
Handling around 2.7 million payments for qualifying creditors, the bankruptcy administrator stated Originally filed for bankruptcy in July 2022, Celsius ran across several legal obstacles including fines of up to $4.7 billion. Authorities also arrested and charged former CEO Alex Mashinsky on financial fraud, misleading consumers and price manipulation of the CEL coin.
Celsius has made tremendous progress in addressing its debt, but more has to be done particularly in ensuring that all creditors—regardless of the size of their claims—may reclaim their assets.
