Celcius Incinerates 94% of CEL Supply in Major Token Burn

Celcius Network, a previously insolvent cryptocurrency lending platform, has burned 652.2 million CEL tokens, representing 94% of the total token supply. The burn transaction, which occurred on April 30, sent the tokens to a null address, effectively removing them from circulation. The move reduces the remaining supply of CEL tokens to 40.6 million, leading to a potential increase in value as demand remains consistent with a smaller supply. The decision aligns with Celsius' bankruptcy filing from September 2023, outlining the company's intent to burn all CEL tokens under its control.

Celcius Network incinerates 94% of CEL token supply in decisive move

In a bold and unprecedented move, Celcius Network, a once-beleaguered cryptocurrency lending platform, has incinerated an astounding 652.2 million CEL tokens, representing a staggering 94% of the token's total supply.

Executed on April 30th, the transaction consigned the tokens to a burn address, effectively removing them from circulation. According to data from Etherscan, the incinerated tokens were worth approximately $83.2 million based on current market prices. The transaction originated from a wallet controlled by Celsius, as identified by data from Arkham Intelligence.

The burn has drastically reduced the remaining CEL token supply to a mere 40.6 million, as reflected in updated data on CoinGecko. This significant supply reduction has direct implications for CEL's market value, as diminished supply coupled with sustained demand can lead to price appreciation.

In the hours surrounding the burn transaction, CEL's value surged from $0.130 to $0.137, representing a gain of approximately 5%. However, this gain was less remarkable when considering the broader cryptocurrency market performance over the same 24-hour period, which saw the entire market decline by 4.4%, with CEL posting a 5.3% loss.

Celcius Network's decision to incinerate its CEL holdings aligns with the company's bankruptcy filing from September 2023. In the filing, Celsius stated its intention to burn all CEL tokens in its possession once the company's reorganization plan became effective. The company clarified that it could only burn tokens under its control and could not "cancel" all CEL tokens or prevent trading on exchanges.

The burning of the tokens was cited by Celsius as part of its argument for valuing each token at $0.25, regardless of the company's actions related to its own holdings.

In early February, Celsius unveiled a plan to distribute $3 billion worth of cryptocurrency to its creditors, although the company made no explicit mention of the token burn in its public announcement at that time.

Celcius Network's audacious move to incinerate the vast majority of its CEL tokens is a watershed moment in the cryptocurrency industry. The decision underscores the company's commitment to restructuring and compensation, while also demonstrating the potential impact of token burns on market valuation. As Celcius navigates its bankruptcy proceedings, the implications of this unprecedented burn will undoubtedly continue to reverberate throughout the cryptocurrency ecosystem.