The struggling cryptocurrency lending and borrowing firm Celsius’ CEL token skyrocketed when a corporate shareholder proposed a rescue plan and a $10 million payment was made to the decentralized finance (DeFi) platform Compound
A rise in the rate of CEL, a token that Celsius issues as a reward to platform users, appears to be the result of a few positive Celsius-related news stories.
The token has increased by 52.4% over the previous 24 hours and by approximately 400% over the previous week when it was trading at a price of $1.41. The token is still down 83% from its record high, which was reached in June of last year.
The only way to find a timely solution to the predicament Celsius is facing is through finance restructuring and innovation, according to a recovery strategy put out by Simon Dixon, the founder of the crypto-focused investment business Bnk to the Future.
Last Monday, Celsius put a halt to all the customers’ withdrawals, claiming extreme market circumstances as the cause. Dixon identifies himself as a Celsius stakeholder in this plan.
The fact that Mt. Gox—the iconic Bitcoin (BTC) exchange that crashed in 2014—is still in dispute in Dixon’s opinion this is one of the reasons why financial innovation is superior to utilizing conventional techniques.
Dixon claimed that the best possible answer for Celsius will be financial innovation like what was done with Bitfinex in the plan. According to him, the Bitfinex issue was handled within 9 months and sorted out flawlessly for the investors.
Users were severely impacted by a hacking event in 2016 that caused the site to lose almost $70 million worth of Bitcoin. The same were compensated and were given LEO tokens by the cryptocurrency exchange Bitfinex.
Celsius Pays Back and Rises
Repayment itself was another encouraging development that may have had a beneficial impact on the pricing.
Today’s discovery of a $10 million stablecoin DAI transfer from Celsius to the DeFi website Compound on the Ethereum (ETH) blockchain serves as a reminder that Celsius is still fighting for survival.
The payment is the most recent in a string of ones that Celsius has made over the previous week. The business made a number of payments totalling DAI 53.74 million to its vault on the DeFi protocol Oasis on Tuesday and Thursday of last week.
In order to create returns for its clients, who were guaranteed to be paid a predetermined interest on their deposits, Celsius was well known for deploying a number of DeFi protocols