Santiment analysis: big investors caused the CEL token rate to rise by 933%

After the freezing of Celsius client funds, traders were not interested in the asset, the rise in price was caused by the accumulation on the part of institutionalists

23.06.2022 - 15:45

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What’s new? Analyst firm Santiment conducted a study that found that large investors have been actively buying the Celsius native token (CEL) of the DeFi platform for the lending of the Celsius Network. On June 21, its price was up 933%. After Celsius' client funds were frozen, traders had no interest in the token for ten days, while “big shark and whale addresses were accumulating in a big way,” which contributed to the rise in value.

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How did the price of the asset change? On June 12, Celsius Network announced the temporary suspension of withdrawal functions as well as exchange and transfer between customer accounts, after which CEL collapsed by more than 99% from its all-time high. On June 13, the token hit a multi-year low of $0,15, but rose to a peak of $1,55 on June 21, an increase of more than 933%. As of June 23 at 15:00 UTC, the token is trading at $0,91, having lost 8,5% in 24 hours, according to the Binance cryptocurrency exchange.

On June 14, Celsius hired lawyers from Akin Gump to conduct a restructuring, and later brought in specialists from investment bank Citigroup to find new sources of funding. On June 20, the company suspended communication with the community, but announced that liquidity stabilization and asset protection were still the goals. The platform is also working with regulators to address problems that have arisen.

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