Celsius: CEL rallies as bankrupt lender reaches settlement with its creditors
- CEL’s price logged gains during the weekend trading session.
- This was a result of a settlement reached between Celsius and its unsecured creditors.
Celsius [CEL] price experienced growth during the weekend’s trading session as the beleaguered token rallied by 5% between 22 and 23 July. During the intraday trading session on 22 July, CEL’s price grew by 12% to rank among the day’s top gainers, data from CoinMarketCap revealed.
Read Celsius Network’s [CEL] Price Prediction 2023-2024
Celsius and its creditors may finally see eye-to-eye
The weekend rally was attributable to the news of Celsius reaching a settlement with the Official Committee of Unsecured Creditors concerning a class claim. In this claim, account holders accused the crypto platform’s former management of engaging in fraudulent activities, misrepresentation, and other actions that purportedly caused harm to them.
According to court documents filed on July 20, the bankrupt lender noted that the settlement with the committee was to prevent any major harm to “creditors through delayed distributions and ultimately lower distributions as a result of increased administrative expenses incurred in connection with adjudicating such claims.”
Celsius stated that it was willing to offer an additional 5% to the claims of account holders who opt into the lawsuit settlement.
“Any eligible Account Holder who does not opt out of the Settlement will receive a claim in the amount of 105% of their scheduled claim, which will supersede and extinguish any related Proofs of Claim filed by such Account Holder,” the court filing read.
For account holders who do not accept the terms of the settlement, Celsius added:
“But any Account Holder who opts out will not receive the increased claim amount, will not receive a distribution from the Debtors until their applicable Proofs of Claim are fully and finally resolved by the Bankruptcy Court—which likely will be months—perhaps years—after the Effective Date, and will have to litigate and prove or otherwise resolve their proofs of claim against the Debtors after the Effective Date.”
CEL accumulation rallies on a daily chart
A closer look at CEL’s price revealed that the alt’s value has climbed by 38% in the last month. This jump in price was due to an increase in CEL accumulation, as gleaned on a D1 chart.
Is your portfolio green? Check the Celsius Network Profit Calculator
Key momentum indicators faced upward at press time and have embarked on an uptrend since the month began. For example, at the time of writing, CEL’s RSI was 57.27, while its MFI inched closer to the overbought position at 77.41.
The price jump might have also resulted from the increased profitability currently associated with trading CEL tokens. According to the on-chain data provider Santiment, the ratio of CEL’s daily on-chain transactions in profit exceeds those that return losses.