Cryptocurrency bankruptcy token grew by 4000% in two months

The cryptocurrency lending platform Celsius Network has a cash deficit of almost $ 1.2 billion. In addition, the firm has filed for bankruptcy. However, the firm’s own utility token, Celsius Network CEL, has increased in value by more than 4100% over the past two months. Compared to mid-June, when the token was trading for $ 0.093, it is currently worth approximately $ 3.93. For comparison, during the same period, the most popular coins BTC and ETH grew by 40% and 130%, respectively.

Rumor has it that the reason for CEL’s growth is the rumor that Ripple wants to acquire the assets of Celsius Network. Interestingly, the price of CEL more than doubled after the news hit the media. In July, there were also rumors about the intention of the investment company Goldman Sachs to acquire Celsius Network for $ 2 billion. Around that time, the CEL token was trading at just $ 0.39.

Interestingly, on August 13, the FTX cryptocurrency exchange had about 5.1 million CEL tokens, which was about 90% of the total turnover on the exchanges. At the same time, the number of open short positions on the exchange amounted to about 2.66 million CEL, compared to a monthly high of 2.96 million CEL on August 11.

Experts predict that the CEL token risks facing an extreme correction in its price in the near future. As noted, the token is already overbought, which further strengthens the forecasts of a decline in its cost.