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The Celsius bankruptcy has rendered its token to decline rapidly, hopeful investors continue to buy
Crypto lending platform Celsius recently reported on Wednesday that it has filed for bankruptcy in the US, just a month after it froze withdrawals in its platform due to a massive crypto crash. The platform had suspended withdrawals in mid-June and claimed that the firm was looking for ways to maximize profits for all its stakeholders. Meanwhile, they also claimed to have US$167 million of cash in case they needed to meet emergencies. Amid these turbulences, the entire crypto market seems to be undergoing a recession storm, triggering constant sell-offs of major cryptocurrencies. With growing controversies around the bankruptcy filing from crypto giants, the CEL token also started to plummet. According to reports, CEL plunged by more than 82% since the market meltdown.
Following the freeze on the withdrawals and bankruptcy cases, investors started to share their experiences after the company declared facing financial troubles, some of them even insinuated that they have invested their lives’ savings and eventually lost them. The fate of the investors is still quite uncertain, and the duration as to when the normal operations will resume is obscure too. After these revelations, the CEL token recoded significant amounts of losses, despite CEL holders trying to aid the token in regaining its value. It is important for the Celsius token to surge in value since it might also rescue the platform from its financial troubles.
According to reports, the company has more than 100,000 creditors, which could include both customers and lending counterparts, based on the bankruptcy reports. Being, one of the largest players in the crypto space, investors were quite excited about the various facilities that it provided. The firm accepted that it had 1.7 million customers as of June. Nevertheless, the company is still quite optimistic about a positive return to the crypto ecosystem, and so are the analysts who believe that the CEL token has a high chance of surging quite soon.
When will the market recover?
Celsius is just another victim of the crypto crash, and so are several other crypto businesses and investors. Experts say that the fall of the crypto businesses initiated after Three Arrows Capital headed to the bankruptcy court. Other crypto platforms like Genesis, BlockFi, and BitMEX, to name a few continue to suffer due to the plummeting value of the crypto industry. The crypto ecosystem is suffering due to several factors including the fact that the global financial and economic markets are suffering from inflation, making investors sell off riskier assets like stocks and cryptos. Furthermore, the crypto market is increasingly following the footsteps of the stock market, as a result, the decentralized domain is also becoming a part of the mainstream economic downturns.
When will the crypto market recover?
Needless to say, this has been a disastrous year for crypto investors. The global market cap shrunk below US$1 trillion and the prices of some of the most important crypto assets in the market continue to plummet. Bitcoin has lost more than 50% of its value and Ether is quite closely following its tracks. While there are no signs of recovery, key indicators have been analyzed, and smart investors are rapidly buying the dips. BTC whales have not given up and are hoping that the condition of the market will soon rise. But the brewing troubles in crypto lending platforms, exchanges, and companies are threatening a bigger collapse, hence, preparing for the worst should be the best investment strategy right now!