Post the LUNA debacle, price dips extending beyond 90% do not essentially surprise people from the crypto community. With the bear market in play, most coins—including that Bitcoin and Ethereum—are currently trading at historic lows. Their losses have, however, remained capped under 20% over the past day.
Celsius Network’s CEL token, on the other hand, ended up losing more than 50% of its value in the same time frame. Leaving aside the broader bearish sentiment, the chaos in its ecosystem managed to trigger the dip. When zoomed out and viewed, CEL’s losses mount up to 98% from its all-time-high-level of $8 registered last year.
$0 on the cards for Celsius?
At press time, the once valued $8 token was priced at merely $0.1900. Post the staking network announced that it was putting a hold on withdrawals, swaps, and transfers, people from the community went on to outrightly express that “middle men,” or any “3rd party entity” shouldn’t be trusted with anything.
Users did not hesitate to equate Celsius with LUNA and call the platform merciless. Also, stalwarts have explicitly stated that Celsius, along with LUNA, should be “case studies” on counter-party risks at the Harvard Business School.
With the outrage on the part of market participants justified, it shouldn’t be forgotten that Celsius, at this stage, has been receiving helping hands from other prominent players in the space.
Just a few hours back, for starters, Nexo rolled out a buyout proposal. In its letter of intent, it went on to state that it could readily acquire “part or all” qualifying, outstanding collateralized loan receivables secured by their corresponding pledged cryptocurrency collateral, subject to Nexo’s risk management and requirements.
While a few from the space have termed the said gesture to be an encouraging development, it still hasn’t been accepted by the Celsius team. The offer, as such, stands valid till 20 June.
The state of CEL, undoubtedly, seems to be quite catastrophic at the moment, but it’s still early to declare its demise and pronounce it to be dead.