As of today, the trading price of Celsius (CEL) tokens has experienced a significant jump. The jump in the trading price of CEL tokens was observed after one of the shareholders of the troubled borrowing and lending platform for cryptocurrencies proposed a plan.
Right after the proposition of the recovery plan, the trading price of the CEL token experienced a significant jump. After the proposal was made, Celsius proceeded with making a payment worth $10 million to Compound, a decentralized finance platform.
Good News in Favor of Celsius
Regarding the surge in the price of the CEL tokens, a couple of factors seem to have worked in favor of the digital asset. CEL is a token that the users are able to acquire from the Celsius platform in the form of a reward.
The report shows that in the past 24 hours, the trading price of the CEL token has been pushed up by 52.4%. In the past 7-days, the trading price of the CEL token has recorded an almost 400% elevation. After the surges, the trading price of the CEL token is now $1.41.
Despite the recent surges, the trading price of the CEL token is still down by 83% from the all-time high it had reached back in June of 2021.
Who Proposed the Recovery Plan?
The founder of ‘BnktotheFuture, a significant investment firm focused on cryptocurrencies, Simon Dixon reportedly proposed the plan for the recovery of the protocol.
He proposed that in order to find a timely solution for Celsius’s situation, it is important that financial innovation is introduced. It is the only way that the Celsius network can recover itself from the bad situation it is stuck in.
Issue Faced by the Celsius Network
It was just last week when Celsius network had to make the decision of halting the withdrawal service for all the customers. The officials stated that it was due to the extreme market conditions they had to make the decision of ceasing the withdrawals.
Dixon advised that in order to deal with the problem, Celsius must adopt the financial innovation that was adopted by Bitfinex when it ended up facing a similar issue.
He added that despite waiting a long time of nine months, Bitfinex was able to recover and the strategy had worked out very well in favor of the exchange.
The second factor was indeed the payment Celsius made to Compound. It was a repayment that Celsius made
Following the payment of the amount to Compound, it is expected that the trading price of the CEL tokens may experience a significant surge in the upcoming days.