Celsius Incinerates CEL Tokens in Post-Bankruptcy Recovery Plan

In a strategic post-bankruptcy move, Celsius Network incinerated 94% of its CEL tokens, significantly reducing the supply and potentially boosting their market value. The company burned 652.2 million tokens worth around $83.2 million, resulting in a current supply of only 40.6 million tokens. This could lead to a price increase due to the law of supply and demand, as the value of each token becomes higher, assuming that demand remains constant.

Celsius Network Incinerates CEL Tokens in Strategic Post-Bankruptcy Move

In a significant strategic maneuver, Celsius Network has incinerated a substantial portion of its CEL tokens, effectively removing approximately 94% of the total supply from the market. This move aims to positively influence the market value of the remaining tokens through the principles of supply and demand.

On April 30, Celsius Network transferred 652.2 million CEL tokens to an inaccessible "null address," permanently removing them from circulation. According to the Etherscan analysis platform, these tokens held a market valuation of approximately $83.2 million at the time of incineration.

The reduction in available CEL tokens to just 40.6 million, as per recent data, implies the potential for an increase in their value due to the reduced supply relative to demand. This may drive prices higher, assuming demand remains constant.

Prior to the burn event, CEL's market value experienced a notable appreciation, rising from $0.130 to $0.3373, representing a 150% increase over the preceding 24 hours.

The token burning process formed a crucial component of Celsius Network's reorganization plan following its bankruptcy declaration in September 2023. The company pledged to eliminate all CEL tokens in its possession by the effective date of the restructuring.

"This step is an essential measure to align the company's interests with the long-term health and financial stability of our network," stated a Celsius Network spokesperson.

Value Adjustment and Creditor Distribution

The adjustment of CEL tokens' value, set at $0.25 for accounting purposes, was deemed necessary by the company irrespective of market fluctuations or Celsius Network's internal actions.

In addition to the token burn, Celsius Network announced in February the distribution of $3 billion in crypto assets to its creditors, marking a significant step in its efforts to recover and compensate those affected by its previous financial difficulties.

This strategic move demonstrates Celsius Network's commitment to rebuilding and regaining financial stability, while potentially benefitting holders of the remaining CEL tokens through the reduction in supply and the potential for increased value.