Celsius price bleeds 20% overnight after filing Chapter 11 voluntarily

• Celsius Network filed Chapter 11 bankruptcy voluntarily and started financial restructuring of the crypto lender. 
• Following Vauld, Voyager Digital and Three Arrows Capital, now Celsius Network faces paying back between $1 billion and $10 billion. 
• Celsius price plummeted, posting double-digit losses overnight alongside bankruptcy filing news. 

Celsius Network filed a series of motions with the court after voluntarily filing for Chapter 11. The crypto lender has followed Vauld, Voyager Digital and Three Arrows Capital in their collapse. The network’s token has posted double-digit losses overnight. 

Celsius Network prepares for smooth transition, files Chapter 11

Celsius Network, one of the world’s largest cryptocurrency lenders, filed for bankruptcy protection after freezing customer assets for over a month. The firm revealed in a press release that this filing is “an opportunity to stabilize its business.” 

Alex Mashinsky, the co-founder and CEO of Celsius, said,

We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.

Celsius Network announced that Chapter 11 proceedings would allow the firm to restructure a month after the crypto lender decided to pause withdrawals, swaps, and transfers on its platform to stabilize its business and protect its customers. 

If Celsius Network kept withdrawals open, it would have allowed customers who act first to be paid first and full, while leaving others behind waiting for illiquid or long-term assets to be liquidated. 

Celsius Network revealed that it had 1.7 million users before the collapse. Celsius CEO had slammed critics for spreading FUD about the firm days before pausing all withdrawals. 

Celsius token takes a hit, falls 20%

There is a spike in selling pressure on the Celsius Network token on the FTX exchange. 100,000 CEL tokens are currently on FTX, and short positions have climbed to 7 million CEL. The selling pressure stems from short sellers, and the network has no plans to enable withdrawals after Chapter 11 filing. 

Analysts at FXStreet identified three altcoins to keep an eye on. Analysts argue that CHZ, XRP and STORJ are three key cryptocurrencies to watch. For more information, watch this video:

 

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