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After filing for bankruptcy in July 2022, the Chief Executive Officer of Celsius announced a new plan to revive Celcius. Following the new plans to restructure the core business model of this cryptocurrency lending platform, Celsius has pumped by 22%.
Celsius Crypto Crash in 2022
The crypto lender, Celsius, decided to halt withdrawals, swaps and transfers in June 2022 due to worsening market conditions which led to the crypto bear market. Moreover, Celsius filed for bankruptcy in July 2022 after lending out more than $7 billion worth of cryptos in the previous year.
The native token of Celsius, CEL, corrected from the $4.2 level in January 2022 to $0.2 in June 2022. Despite this instant price crash, Ceslisus has managed to revive itself in the last few months.
Celsius Pumps in Early September 2022
During the beginning of September, Celsius tweeted announcing their plan to reopen withdrawals for specific custody and withhold accounts.
On September 2nd, CEL rallied after Celsius asks court to let it return USD 50 million + in crypto. Chris Ferraro, the Chief Financial Officer (CFO), also stated that Celsius has enough funds to continue operations till the end of 2022. During a bankruptcy hearing call, the CFO stated that the company would receive additional funds via matured loans and tax savings.
This may have been another reason for the positive turnaround in the CEL price in early September. Following the announcement, the CEL price shot up from $1.1 on September 1st to $1.56 within 24 hours.
Celsius New Plan to Refocus Business
At an employee meeting on September 8th, Alex Mashinsky, the CEO of Celsius, came up with an audacious plan to revive the business. The plan was to refocus the business on custody – providing investors with a safe way to store their digital assets and charging fees on specific transaction types.
Earlier, Mashinsky blamed the company’s reckless asset deployment and marketing strategies for their failures. For example, the promise of providing an 18% interest on staked cryptos proved to be unsustainable.
However, the new business proposal has temporarily revived the price of Celsius. From a price of $0.8 towards the end of August, Celsius is currently trading at $1.76 as of September 14th, 2022. This 2x price increase may be signs of more to come, as CEL looks to become one of the fastest growing cryptocurrency assets in the last few months.