Celsius Network’s Token CEL Drops 58% After Bankruptcy Filing, So-Called ‘Short Squeeze’ Falters
During the last 30 days, the Celsius Network’s native token CEL increased in value by over 140% against the U.S. dollar. On July 13, just before the lending company filed for Chapter 11 bankruptcy, CEL was exchanging hands for $0.961 per unit. Following the news that the company filed for bankruptcy protection, the native crypto asset dropped 58% to a low of $0.40 on the same day. CEL has managed to climb back from the drop as the digital currency is currently swapping for prices between $0.69 to $0.73 per coin on July 14.
So-Called CEL Short Squeeze Attempt Slips, Token Drops 58% After Bankruptcy News
Following the company pausing withdrawals and other operations on the lending platform, traders on social media started a trend to get people to “short squeeze” the crypto asset CEL. Social media posts on Twitter, Reddit, and Facebook claim that Celsius Network’s native token CEL is being short-squeezed by members of the Celsius community.
Some people promoting the trend explain that getting CEL’s value to skyrocket will help the company Celsius get out of financial trouble. Influencers claim the move is akin to the infamous Gamestop short squeeze attempt pushed by the community members from the subreddit r/wallstreetbets. “[The] CEL Short Squeeze metrics still on our side,” one individual wrote on Wednesday. “93% CEL token remains locked up on the Celsius,” the Twitter account added.
However, CEL short squeeze promoters have come under fire as people have criticized the idea a great deal. Some have said that individuals promoting the CEL short squeeze concept should be held accountable. Despite the criticism, the concept is still being promoted on social media platforms at the time of writing on July 14, 2022. Market data shows that celsius network (CEL) tokens have increased more than 140% against the U.S. dollar during the last month of trading sessions.
Moreover, CEL tapped a high on July 13, at $0.961 per unit according to Wednesday’s metrics but on the same day, CEL plummeted to $0.40 per CEL after the company’s Chapter 11 bankruptcy filing was featured in headlines. The crypto asset did rebound from the $0.40 per CEL low tapped on Wednesday and the following day, CEL was trading for just over $0.80 per coin on Thursday. At the time of writing, on July 14, 2022, between 4:30 p.m. to 5:30 p.m. (ET), CEL is trading for $0.69 to $0.73 per coin.
While CEL is down more than 19% against the U.S. dollar, the crypto asset is down 23% against bitcoin (BTC) and 27% against ethereum (ETH). CEL is currently ranked 116 out of the 13,400 crypto assets in existence, and it’s down 90% since the digital currency’s all-time high (ATH). CEL tapped $8.05 per coin about a year ago on June 4, 2021, and it was once ranked in the 36th position in terms of market capitalization.
What do you think about the so-called CEL short squeeze and the crypto asset dropping more than 58% in value on Wednesday? Let us know your thoughts about this subject in the comments section below.
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