Originally published on: September 24, 2024
The Celsius Network’s native token has seen an impressive surge of over 300% just a month after initiating a repayment scheme totaling $2.5 billion for more than 250,000 creditors. Initially trading at $0.16, the token’s price soared to $0.65 on Sept. 23, marking a remarkable 300% increase from Aug. 26. Currently, CEL is trading around $0.58, according to Cointelegraph Markets Pro data.
Although the token price has shown signs of recovery, it remains 1,287% below its all-time high of $8.05 in June 2021. With approximately 84% of the assets repaid to creditors by Aug. 26, totaling $3 billion, most creditors have received their due. However, there are still some creditors who have not claimed their digital assets, primarily due to the small amounts owed.
Of the remaining creditors yet to claim their crypto, 64,000 have less than $100 to claim, while 41,000 are owed amounts between $100 and $1,000. The bankruptcy administrator noted that the nominal amounts owed may be why some creditors have not taken steps to claim their distributions.
The bankruptcy filing in July 2022 came after Celsius faced fines up to $4.7 billion from the US Federal Trade Commission and legal issues, including the arrest of former CEO Alex Mashinsky on charges of financial fraud and market manipulation.
The recent surge in the Celsius token price showcases renewed investor confidence in the network following the repayment to creditors, signaling a potential turnaround for the platform.
