Celsius Network Bankrupt, Why CEL Token Price Rises 4 Thousand Percent?

Even though Celsius Network went bankrupt, the price of its native token, CEL, skyrocketed by thousands of percent, raising question marks among most investors.
Since the collapse of the Terra ecosystem, Celsius Network has experienced financial problems, which led to it discontinuing all services, such as withdrawals, deposits and transactions. The company has also been on the verge bankruptcy which made the market even more heated and filled with worries, bringing the crypto market even more sluggish in the first half of this year.

Celsius Bankrupts, But Token Prices Skyrocket

Based on reports Cointelegraph, Celsius has liabilities owed to users and there is a balance sheet gap of about US$1.2 billion. Previously, the crypto lending company had filed for bankruptcy protection, so there doesn't appear to be any profitable prospects for the company, nor the original token, in the long term. However, instead of a free fall, the price of the CEL token has skyrocketed by more than 4,000 percent in the last two months, or since the start of the second half of this year. The price in June was around US$0.093, and currently the price is moving in the range of level $3.80. Of course this is a big question mark, especially for investors who don't really follow the developmental path of Celsius's fortunes, where major cryptocurrencies such as Bitcoin and Ether rose by only 40 percent and 130 percent in the same time period.

Takeover Rumors

It seems, the takeover rumors have been the mastermind behind the soaring price of the CEL token, especially the Ripple Labs company which reported want to buy Celsius Network. In July, there were rumors that Goldman Sachs also intended to take Celsius for $2 billion. However, these two rumors still cannot be confirmed because neither Goldman Sachs, nor Ripple Labs, have confirmed the truth of the rumors. Not only that, the encouragement of retail investors is also one of the driving factors for the price of CEL tokens. It is known, some of them have organized short squeeze to limit the decline in the token. For your information, short squeeze is when the price of an asset suddenly rises, forcing sellers to short to buy back assets at a higher price to close their positions.

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