Celsius May Devalue CEL Token Due to Bankruptcy

02/16/2023 16:58 • Metaverse Matters • 136 views

It is reported that the lawyer of Celsius, the bankrupt cryptocurrency lender, said that the company may value its CEL Token at 20 cents, far below its current market value of 54 cents.

Celsius lawyer: Celsius may set the CEL value at US $0.2, which is far below the market price

Interpret the above information:

Celsius, a digital cryptocurrency lender, is reportedly considering a steep decline in the value of its CEL Token. CEL Token, the native token of Celsius network, allows the users to earn rewards and borrow funds at a discounted rate. However, the latest report claims that the token may be worth just 20 cents soon, almost one-third of the current market value.

The move comes amid the bankruptcy filing of Celsius. The company, which has a significant number of outstanding loans, will have to undergo extensive restructuring in order to prevent further revenue loss. In this context, the CEL Token is a potential asset that could help the company pay off its dues.

According to sources, the lawyer representing Celsius has informed the bankruptcy court that the token may be valued at 20 cents per token. This valuation is not only way below its current market value of 54 cents but also lower than its historical lows. It is yet to be seen how the market will respond to this news and whether the tokens will be valued at the predicted 20 cents.

The impact of this valuation on the investors and users of Celsius will be significant. While the company may benefit from a lower valuation by using it to pay off its debts, the users will be left with devalued tokens. Consequently, the CEL Tokens may become less attractive for users to hold and trade, adversely affecting the liquidity of the currency.

Moreover, a lower valuation may lead to a loss of confidence among the users in the Celsius network, who may turn to other financial instruments that offer greater stability and sustainability.

To summarize, the possibility of Celsius devaluing the CEL Token is a direct result of the company’s financial difficulties. The move may have far-reaching impacts on the users and investors of Celsius, as well as the cryptocurrency market at large.

In conclusion, the management of Celsius needs to take a long term perspective as they restructure their business, keeping in mind that the CEL Token’s reputation and value are a critical determinant of its future success.

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