Celsius Bounces Back: After Bankruptcy, Burns 94% of Tokens, $CEL Surges 300% in Just One Week

Following its emergence from bankruptcy, Celsius, a cryptocurrency lending platform previously valued at $3 billion, underwent a significant transformation. After filing for Chapter 11 bankruptcy reorganization in July 2022, Celsius implemented a restructuring plan known as the "MiningCo Transaction" to enhance creditor repayment, focusing on Bitcoin mining. Approved by the court in December, the company officially exited bankruptcy in January, distributing over $3 billion in cryptocurrency and fiat to creditors.

Celsius Initiates Massive $CEL Token Burn: Restructuring Sparks Market Surge

In September 2023, Celsius signaled its intention to destroy all $CEL tokens it held as part of the restructuring plan. On April 30th, Celsius commenced the token destruction process by burning its $CEL holdings. This burn involved sending 6.522 billion $CEL tokens to a null address, accounting for 94% of the previous total supply. At current market prices, the burnt tokens amounted to approximately $415 million.

$CEL Token Supply Shrinks Dramatically After Burn: Celsius Firm on Restructuring Plan

Following the token burn, the remaining supply of $CEL decreased significantly to around 40.6 million tokens. The token transfer, confirmed to originate from a Celsius-controlled wallet, underscored the company's commitment to its restructuring plan. Celsius asserted that each $CEL token should be assigned a specific value of $0.25 for accounting purposes.

Celsius Token ($CEL) Price Soars Amidst Token Destruction Clarifications

Despite clarifications that Celsius could only destroy the tokens it held and couldn't halt all $CEL token transactions, the news spurred a dramatic surge in $CEL's price. Starting from April 30th, $CEL experienced an astounding 291% surge within a week, soaring from $0.13 to $0.58 per token. The daily increase remained remarkable at 90%, with the latest price reaching $0.5800 per token.

Celsius' resurgence post-bankruptcy, coupled with the massive token burn and subsequent price surge of $CEL, signals renewed investor confidence in the company's restructuring efforts. However, uncertainties remain regarding the long-term implications of these developments on Celsius and its stakeholders. Continued monitoring of Celsius' performance and market dynamics will be crucial for assessing its future trajectory.