Celsius price (CEL) rises 52% despite network problems

The issues with the Celsius network are not resolved, but the native CEL token is reacting.

The price of the digital asset surged from $0.79 to a local top of $1.55, a jump of over 96% in just a few hours.

After reaching this peak, the price retreated to $1.26, its current price, registering an increase of more than 50% in the last 24 hours and more than 370% in the last week.

CEL token price chart for the last 24 hours. Source: CoinMarketCap

CEL token values ​​even in the face of problems

This CEL rally comes at a time when the broader digital asset market is taking a break from last week’s sharp declines.

The CEL token, in particular, suffered the consequences of blocking withdrawals by users of the Celsius protocol in mid-June.

As CriptoFácil reported, the token price dropped more than 60% after the team paused customer withdrawals. At the time, the team only cited “unfavorable market conditions” as a reason.

After that, the protocol hired restructuring-focused law firm Akin Gump Strauss Hauer & Feld LLP to try to resume activities.

In addition, Citibank would also have been called in to help with the task. But so far, the problems have not been resolved.

Just days after the shutdown, the Texas State Securities Board opened an investigation into the Celsius team’s decision to suspend redemptions from its clients last week.

According to Joseph Rotunda, director of enforcement for the council, this investigation is a priority. After all, many customers need access to their assets, but cannot:

“I am very concerned that customers – including many retail investors – may need to immediately access their assets but not be able to withdraw from their accounts. The inability to access your investments can result in significant financial consequences,” he said.

Problems continue

The most curious thing about the CEL appreciation is that the team did not disclose any asset unfreezing plan.

On June 19, the team released a note saying that its objective remains to stabilize liquidity and operations. But the team stressed that this process will take longer.

“We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a solution. We are pausing our Twitter Spaces and AMAs to focus on meeting these unprecedented challenges and seeking to fulfill our responsibilities to our community,” they wrote.

Echoing the words of the project’s CEO, Alex Mashinsky, the new post said they “continue to work 24/7” to find a solution for all those customers who haven’t been able to withdraw their funds for days.

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