Celsius Network burns 94% of CEL token supply after bankruptcy exit

5 months ago 22
ARTICLE AD

Celsius eliminates nearly all of its CEL tokens through a massive burn transaction.

Celsius Network, a previously embattled cryptocurrency lending platform, has burned 652.2 million CEL tokens, representing 94% of the total token supply.

The transaction, which took place on April 30, sent the tokens to a null address, effectively removing them from circulation.

According to data from Etherscan, the burned tokens were valued at approximately $83.2 million based on the current market price. The transaction originated from a wallet controlled by Celsius, as identified by Arkham Intelligence data.

The burn has reduced the remaining token supply to 40.6 million CEL, as reflected in the updated data on CoinGecko. This significant reduction in supply has implications for CEL’s market value, as a decrease in supply coupled with sustained demand could potentially lead to a price increase.

In the hours surrounding the burn transaction, the value of CEL rose from 13.0 to 13.7 cents, representing a 5% increase. However, this change is less notable when considering the broader crypto market’s performance over the same 24-hour period, with the entire market experiencing a 4.4% decline and CEL’s price falling by 5.3%.

Celsius Network’s decision to burn its CEL holdings aligns with the company’s bankruptcy case filing from September 2023. In the filing, Celsius stated its intention to burn all CEL tokens in its possession on the effective date of the reorganization plan. The company clarified that it could only burn tokens under its control and could not “cancel” all CEL tokens or prevent trading on exchanges.

The token burn was raised as an argument by Celsius to justify assigning a value of $0.25 per token to CEL, regardless of the company’s actions regarding its holdings.

Earlier in February, Celsius announced plans to distribute $3 billion in crypto to creditors, although the company did not explicitly mention a token burn in its public announcement on the effective date.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Read Entire Article