Celsius Token Surges 300% in a Month After $2.5B Repayment to Creditors
- The insolvent digital asset lender paid back around $2.53 billion to 251,000 creditors.
- The tokens price increased 300% from Aug. 26 to Sept. 23, when it reached $0.65.
The native token of the Celsius Network had a price spike of more than 300 percent in the month after the debut of its $2.5 billion repayment plan for over 250,000 debtors.
The insolvent digital asset lender paid back around $2.53 billion to 251,000 creditors, according to a court document filed on August 26. According to statistics, the Celsius (CEL) cryptocurrency was trading at $0.16 back then.
The tokens price increased 300% from Aug. 26 to Sept. 23, when it reached $0.65 as per data from CMC. As of the publishing time, CEL was trading at about $0.46. As of June 2021, when it reached an all-time high of $8.05, the tokens price is 1,287% lower than it was at the time of recovery.
Paying Back Creditors
About 84% of the assets due to creditors were repaid by Celsius on August 26. Even while most of the creditors have already received their payments, some of the smaller ones arent eager to get their hands on their digital assets just yet.
According to the filing, 64,000 of the remaining creditors do not have assets worth more than $100 in cryptocurrency and have not yet claimed it. In the meanwhile, 41,000 people owe $100 to $1,000 in cryptocurrency.
The filing stated that the lack of fund claims may be due to the little sums owing to several creditors. According to the petition, they may not have any motivation to follow the necessary procedures to get their portion.
More than 2.7 million disbursements for qualified creditors have already been sought, according to the bankruptcy administrators declaration. Celsius presented their petition for bankruptcy in July 2022.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
