CEL price rises 18% after Celsius burns 63,502 tokens
Celsius Network ran its latest Coin Burn and reduced the token supply to keep prices high.
Burn CEL. valued at $ 250,000
Celsius posted the news on Twitter, noting that up to 63,502 CELs (valued at $ 250,000) were burned.
Burn, baby, burn ???? $ CEL Burn tokens.
10% of the total number of CELs bought in the market this week to pay Celsians as rewards were burned. 63.502 CEL is now finally withdrawn from the supply.
– Celsius (@CelsiusNetwork) December 10, 2021
This event appears to have increased the value of the project’s native token. The CEL price jumped from $ 3.43 to an intraday high of $ 4.05, an increase of 18.08% over a 24 hour period.
The increase may be due to preventing a stronger burn, rather than the effects of the burn itself. While the fire was at 1:00 AM this morning (i.e. 18:13 UTC on December 10th), the CEL’s first rally took place some Hours before.
The price increase can also be influenced by other factors, such as the anticipation of the project team’s personal appearance at Real Vision’s “Takeover” event in Las Vegas.
Some community members too recommend that a whale sold a large amount of CEL when this should have caused the price of CEL to go down rather than up.
Nevertheless, Celsius’s CEL token also rose slightly after the burn from $ 3.96 to $ 4.05 three hours later.
However, this gain could not be sustained for the next few hours as the price has now fallen to $ 3.9.
Celsius is popular but controversial
Celsius relies heavily on the burning of coins as this process is done weekly for deflation.
It remains to be seen whether the increase in value from yesterday’s events will last, as previous burns recorded a steady decrease in value after temporary increases.
The news comes after two notable controversies. Celsius seems to have lost money to the BadgerDAO hack. In addition, the CFO of the project was arrested in Israel, but apparently unrelated to Celsius himself.
Even so, Celsius is still popular as the leading crypto lending platform. The company claims it has $ 20 billion in assets under management as of August 2021.
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