ROFL! CEL price bullish after Celsius Network bankruptcy — why?

LAGOS (CoinChapter.com) — The bullish trend of the embattled Celsius Network native utility token (CEL) has posed a dilemma for cryptocurrency investors over how the coin has managed to stay positive despite the lending platform’s current financial woes.

Recall that Celsius filed for bankruptcy in July 2022 as a direct result of the major crypto crash in Spring. However, with around $4 billion in debt on its balance sheet, the Celsius token has remained afloat, surging by almost 40% in the last seven days.

Data from Coingecko indicates that CEL price has soared more than 65% in the last two weeks.

At the time of publication, the token currently sits above the $3 benchmark compared to its mid-June bottom of $0.093. CEL’s market cap has also surged significantly, gaining over $300 million in the last seven days.

It is, however, imperative to note that the token could observe some price correction due to the current bankruptcy challenge.

The fact that the token surged with no visible fundamentals and the ongoing debate on how to settle investors, as well as the future of the lending platform, will take a toll on the token price soon.

‘Project Kelvin’ To Celsius Network Rescue

Meanwhile, the bullish action of Celsius token has been attributed to a recent plan laid out by Alex Mashinsky, the firm’s CEO, to revive the embattled company.

Mashinsky and Oren Blonstein, Celsius’s CCO and head of innovation, announced “Project Kelvin” to revive the company by storing users’ crypto and charging fees on certain transactions.

According to a report by the New York Times, Celsius began restructuring soon after the bankruptcy filing. Mashinsky hopes the new strategy will help reignite the platform, saying, “Delta airline filed for bankruptcy. Do you not fly Delta because they filed for bankruptcy?”

ALSO READ: Hodlnaut seeks creditor protection in Singapore

Similarly, Blonstein reassured Celsius employees and customers that the new project would make the platform stage a possible comeback.

“If the foundation of our business is custody, and our customers are electing to do things like stake somewhere or swap one asset for the other, or take a loan against an asset as collateral, we should have the ability to charge a commission.”

Blonstein said.

Additionally, it is worth noting that project Kelvin was named after the temperature unit. However, it isn’t known why Blonstein and Mashinsky chose this name.

Ripple CTO Condemns Celsius Restructuring Plan

Meanwhile, Ripple CTO David Schwartz, among several individuals in the crypto community, has condemned Celsius’s restructuring program. Schwartz, in a tweet, likened the Celsius restructuring plan to a well-known needle-punctured contraceptive.

“He is hoping that they can be up and running for the next bull market where a lot of newbies enter the crypto market. We who were round for his fraud of course aren’t his target group, but we owe it to everybody coming in to keep reminding them of what they are dealing with.”

Another Twitter user noted.

Additionally, in the latest development, Celsius has sought approval to sell its reserve of stablecoins. Finally, recall that a federal judge approved the motion to appoint an independent examiner to investigate aspects of Celsius’ business.

Celsius filed for Chapter 11 bankruptcy and froze withdrawals in July. Since then, some depositors have been told their funds will be released. However, most platform investors can still not access their assets without guaranteeing they will ever receive them.