News
The Celsius network burns over 93% of CEL tokens, driving up the price amid market turmoil
Celsius network made a significant move by burning a substantial portion of its CEL tokens, totaling 652.2 million CEL, equivalent to $85.75 million.
This stock represents a staggering 93.7% of the total CEL supply, effectively reducing the current total supply to 40.6 million CEL, as reported by CoinGecko.
After the fire, there was a notable increase in the price of CEL, recording a 7% increase from $0.13 to $0.139 in the last 7 hours after the fire.
#CelsiusNetwork burned all 652.2 million $CEL ($85.8 million), or 93.7% of the total offering, 7 hours ago, as indicated in the September 2023 bankruptcy filing.
This reduced the total supply to 40.6 million $CEL ($59 million) and may have increased the $CEL price by 7%, from $0.13 to $0.139.
However, $CEL appears… pic.twitter.com/CGyGr8CbFx
— Spot on the chain (@spotonchain) May 1, 2024
Interestingly, despite the token burn, CEL continues to trade normally on various centralized exchanges (CEX), including OKX, Bitget, Gateio, Bybit, and MEXC. This indicates a positive market reception towards Celsius Network’s decision to reduce token supply.
The decision to burn CEL tokens is in line with Celsius Network’s previously stated intent, as outlined in its September 2023 bankruptcy filing. However, the recent announcement of plans to distribute $3 billion in cryptocurrencies to creditors in January 2024 did not mention token burn, raising some eyebrows within the crypto community.
Celsius CEL token price action and trading volume data to watch
It is worth noting that Celsius conducted a test burn of 2 CEL tokens three months ago on January 24, 2024, perhaps as a precursor to the large-scale burn performed recently.
Despite the positive development of token burn, Celsius Network has suffered a decline of 11% in the last 7 days. However, amidst this crisis, there has been a notable increase in trading volume, which today saw an impressive increase of 168%. This suggests that despite the market turmoil, there is still significant interest and activity around CEL trading.
Overall, Celsius Network’s decision to burn a significant portion of CEL tokens sparked optimism among investors, reflected in the price increase and intensified trading activity. As the market continues to evolve, all eyes will be on Celsius Network to see how this move will impact its trajectory in the crypto space.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
Follow us on Twitter @nulltxnews to stay up to date with the latest news on Crypto, NFTs, AI, cybersecurity, distributed computing and News about the Metaverse!
Image source: calassa/123RF