Why Embattled Crypto Lender Celsius Surged 20% Today
In a remarkable turn of events, bulls have continued to shift the script for cryptocurrency banking company Celsius (CRYPTO: CEL), with the value of this project's CEL token surging 20.6% over the past 24 hours as of 10:30 a.m. ET. Since hitting a low of approximately $0.15 per token in mid-June, CEL has rebounded to more than $3 per token.
Despite recent news that a large Canadian pension fund has written off its stake in Celsius, investors appear to be increasingly bullish on this crypto lender's ability to survive. Higher crypto prices in recent months have helped sentiment across many embattled lenders in this sector. Additionally, news that Celsius has received court approval to sell its mined Bitcoin, as well as a number of liquidity injection offers, appears to have many investors believing Celsius may be able to make it through its restructuring with less damage than initially thought.
It's been a rough year for Celsius, to be sure. In April, Celsius indicated that regulatory issues around the company's Earn product had caused the platform to hold nonaccredited investors' tokens in custody. In May, the collapse of algorithmic stablecoin Terra (CRYPTO: LUNC) led to contagion fears, sparking a run on the bank among various lenders in the sector, including Celsius. This led to the ultimate freezing of withdrawals, swaps, and transfers in June, a move that in turn drove this token to its mid-June lows.
Source Fool.com
