Celsius spikes 18% higher on release of ‘Project Kelvin’ recovery plan
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The Celsius (CEL) token posted 18% gains in the last 24 hours to trade at $1.70 as of press time on Sept. 14.
According to the New York Times, the bankrupt CeFi lender is plotting an audacious comeback based on providing crypto custodial services. The recovery plan has been dubbed “Kelvin,” after the temperature measurement unit.
“… they hoped to rebuild the company with a focus on custody — storing people’s cryptocurrencies for them, and then charging fees on certain types of transactions.”
Celsius froze customer accounts in June, citing “extreme market conditions.” Rumors the company was insolvent were being floated in the weeks preceding the announcement, which CEO Alex Mashinsky denied at the time.
Since then, revelations about the company showed that it had played fast and loose with customer funds, particularly regarding risky high-leverage trading.
CEL on a roll
Even before the company froze customer accounts, the Celsius token had suffered a steep decline in price.
CEL reached its all-time high of $8.05 on Jun. 4, 2021. By year-end, the token had almost halved. This trend continued into 2022 before bottoming at $0.086 on Jun. 13, when the company enacted account freezes.
Despite declaring Chapter 11 bankruptcy on July 13, the overall trend since then has been up, spiking as high as $4.66 just two months after bottoming. This equated to a 5,300% increase.
However, a sharp sell-off followed before reaching a local bottom of $0.8650 towards the end of August. The factors behind the higher move remain unclear.
More recently, the hashtag #CelShortSqueeze has been trending, leading to a revival in price appreciation. Since the end of the August local bottom, CEL spiked 145% to top out at $2.10 on Sept. 14.
Again, a sharp sell-off followed, giving up most of today’s gains. However, the uptrend remains intact.
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