CEL climbs 50% as Celsius Network aims to return $50m to customers

CEL's price rally may stall due to Celsius' current troubles, including its bankruptcy.

Altcoin Watch

The price of CEL soared nearly 50% as traders gauged its parent company Celsius Network's willingness to return some of the locked-in funds to its customers.

No CEL-ling pressure yet

On the daily chart, CEL reached its intraday high of $1.67 per token on September 2 after a low of $1.15 the previous day. However, the token's strong rally was accompanied by a decline in trading volumes, suggesting a lack of conviction among traders about further upward moves.

CEL/USD daily price chart. Source: TradingView

CEL's gains emerged after Celsius Network filed a petition in bankruptcy court, asking that its customers with "certain custodial and retainer accounts be able to withdraw the amount of digital assets owed to them."

Celsius has risen by taking its clients' cryptocurrencies and offering them mouth-watering returns by deploying their deposits into the broader crypto lending market.

But the market downturn this year has created a $2.85 billion hole in Celsius' balance sheet, prompting the company to...