Celsius token records double-digit growth
The continuing debates around the viability of cryptocurrency lending platform Celsius, it doesn't seem to have much of an effect on the network's native token, Celsius (CEL), which has surged despite the general volatility in the crypto market.
Just three weeks after the firm imposed a halt on client withdrawals, the token has increased by almost 15.67 percent in the last 24hrs to trade at $0.88 as of the time of writing. According to statistics from CoinGabbar, CEL is up 39% in the last three weeks.
Triggers of Celsius rally
The network's users used social media to fuel a short squeeze rally in support of the struggling lender, which contributed to the most recent CEL advances. Community members claim that the objective was to raise CEL in order to compel short sellers to liquidate their bets.
On June 13, problems with Celsius surfaced when the firm suspended customer withdrawals, claiming that it needed time to stabilize operations and liquidity. The decision was made after the CEL token saw a decline of more than 60% in mid-May.
Businesses like Celsius have suffered because of a credit crisis as a result of the meltdown of the crypto market. Notably, several cryptocurrency lenders such as Babel Finance, CoinFlex, Voyager Digital Ltd., and Finblox have followed Celsius' lead and suspended withdrawals.
After the business apparently lay off 150 employees recently, the Celsius problems have gotten worse. Interestingly, the termination rumors surfaced so quickly after the firm assured its community that it was addressing withdrawal issues and finding a solution to its liquidity issue in a statement.
Along with suspending interactions with community members via sites like Twitter spaces, the corporation has also turned to restructuring attorneys.
Additionally, there are reports that Alex Mashinsky, CEO of Celsius, tried to leave the country but was prevented by local law enforcement. The group, however, later refuted the allegations.
Furthermore, sources said that Celsius was positioned as a platform giving greater returns than a bank while posing fewer risks. But the truth is Celsius faced greater risks than a conventional bank.