Home » Celsius’ CEL token jumps 1600% in a week, is this a GameStop-style short squeeze?

Celsius’ CEL token jumps 1600% in a week, is this a GameStop-style short squeeze?

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For several days, the Celsius platform has been threatened with insolvency. As a result, the price of its CEL token had fallen by over 70%. And yet, it has unexpectedly rebounded and is printing a whopping 1600% over the past week. What happened? We’ll tell you.

CEL price explodes in 1 week

It’s hard to miss this news. For several weeks, several experts have been pointing the finger at the fact that Celsius could find itself in a position of insolvency vis-à-vis its users. The reason for this is poor management of its clients’ assets and overly risky strategies.

A few days after the beginning of the turmoil, Celsius announced the suspension of withdrawals, transfers and swaps of cryptocurrencies on its platform. As a result, the CEL token had collapsed by more than 75% following the announcement, from $0.365 to less than $0.09.

However, for no apparent reason, the token experienced a meteoric and exceptional rise. Indeed, the CEL reached a new local high of around $1.59 on 21 June. In other words, a rebound of more than 1600% in the space of a week since the announcement.

CEL token price trend since the Celsius announcement

CEL token price trend since the Celsius announcement


As a reminder, Celsius was accused of mismanaging its clients’ assets. Indeed, the platform would have used the funds of its users as collateral to borrow with leverage and generate even more returns. Except that these positions were threatened with liquidation, until Celsius intervened and re-collateralised.

But what actually happened?

It would appear that this sudden rise came from a coordinated initiative by the Celsius community. It would seem to have started with a tweet posted by Plan C, a well-known market analyst on the social network. Indeed, Plan C explained that a certain group would reward up to 20 million dollars to anyone who could provide proof of a coordinated attack.

Very quickly, the announcement caused a frenzy on Twitter. Many accounts put the hashtag CelShortSqueeze in their description or nickname, reflecting their intention to target investors who had bet on the fall of the CEL price.

The hashtag remained top trending in the US on the social network Twitter for several hours. As a result, regular daily traders saw an opportunity and flocked to the asset, driving it up.

As a result, those who wanted to bet on the decline of CEL (by borrowing stablecoin against CEL and then selling it immediately) found themselves having to buy back to cover themselves. Thus, they themselves contributed to pushing up the price.

For all these reasons, the short squeeze proved successful for the community, leading to a meteoric rise in the CEL. Of course, this event is reminiscent of what happened to GameStop in January 2021.

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