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Highlights
- Embattled crypto lender Celsius on 13 July filed for Chapter 11 bankruptcy protection following a month of turmoil.
- Celsius' co-founder and CEO, Alex Mashinsky, expressed his confidence that they will be able to reel out of the precarious position and work towards strengthening the company's future.
Embattled crypto lender Celsius on 13 July filed for Chapter 11 bankruptcy protection following a month of turmoil. Celsius made the announcement public through a Twitter post, wherein it vowed to come back stronger and restructure itself to offer value for all its stakeholders.
Celsius, also said it still has US$167 million in cash to manage operations in the meantime. Celsius' co-founder and CEO, Alex Mashinsky, expressed his confidence that they will be able to reel out of the precarious position and work towards strengthening the company's future.
Celsius' Chapter 11 bankruptcy filing comes just weeks after Voyager crypto had filed for the same, after suffering losses due to exposure to Three Arrows Capital.
What had happened to Celsius?
One of the leading lending platforms was caught in the headwinds of the Terra collapse, along with the bear run in the crypto market, and had witnessed huge losses. To make things worse, it stopped all the withdrawals. Celsius also blocked customers' stocks into stETH, resulting in a liquidity crisis.
Several market experts related the events with the Luna crash, which gripped the crypto market. As a result of the Celsius crash, the overall market cap took a hit, dropping below US$1 trillion after its high of US$3 trillion achieved in November last year.
The company, since then, has been under fire, with as many as six state regulators already launching their investigations into its operations.
How is Celsius crypto faring amidst the news?
The news of Celsius' bankruptcy filing is also visible in its market performance. The CEL crypto on 14 July was down by 11.64% at 2:05 PM (GMT +1), according to CoinMarketCap.
The CEL token has now lost 91.9% value since it achieved its all-time high of US$8.05 in June last year. The 146th- ranked token over the past 14 days has witnessed a loss of over 14%, according to CoinGecko.
The CEL crypto on Thursday was trading at US$0.651898 with a trading volume of US$5,46,73,035. The lending platform had a live marker cap of US $15,57,14,696 with 23,88,63,520 CEL coins in circulation.
The collapses that the big firms have witnessed over the past two months indicate how volatile and unpredictable crypto markets can be. Therefore, the investors must stay abreast of the situation and conduct market research to ensure they don't make investment decisions in haste.
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