Despite Lending Platform Turbulence, Celsius Token Is Up By Double Digits.
The continuing problems surrounding cryptocurrency lending platform Celsius’s sustainability appear to have had little influence on the network’s native token Celsius (CEL), which has risen despite broader crypto market volatility.
The token has surged more than 13.85% in the previous 24 hours, trading at $0.86 as of press time on July 4, barely three weeks after the firm declared a halt to consumer withdrawals. In other news, according to Coincu data, CEL is up 7% on the weekly chart.
The current CEL gains are due in part to the network’s community, who used social media platforms to fuel a short squeeze rally in support of the distressed lender. According to community members, the goal was to drive up CEL in order to compel short sellers to close their holdings.
Celsius’s problems first surfaced on June 13 when the firm froze customer withdrawals, citing the need for time to stabilize liquidity and operations.
The decision was made after the CEL token fell by more than 60% in mid-May.
With the crypto market collapsing, businesses like Celsius have suffered as a result of a financing crunch. Notably, several cryptocurrency lenders such as Babel Finance, CoinFlex, Voyager Digital Ltd., and Finblox have followed Celsius’s lead and suspended withdrawals.
Celsius’s problems have worsened in recent days, with the company apparently laying off 150 staff. Surprisingly, the firing report comes only days after the company made a statement promising its community that it is working on withdrawals and resolving its liquidity issue.
“Our relationship with the community and our clients has been a source of pride for all team members at Celsius, and we will continue to share information with our customers as and when it becomes appropriate,”
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