Celsius Token Doubles in Price, Spikes 110% in 14 Days Despite Bankruptcy: What\'s Happening?
The Celsius (CEL) token is defying expectations, experiencing dramatic price surges even amidst the ongoing bankruptcy proceedings of Celsius Network. Recent spikes have seen CEL double in price and even reach a 110% increase over the last 14 days. But why? And is it sustainable?
CEL Token Price Soars Despite Bankruptcy
Celsius’ CEL token price is soaring despite the crypto lending firm filing for Chapter 11 bankruptcy. Varinder Singh reported on a previous spike where the CEL token price skyrocketed nearly 80% in just 24 hours. This volatility and surprising resilience are catching the eye of investors and analysts alike.
Factors Contributing to the CEL Price Surge
Several factors may be contributing to the unexpected CEL price rally:
- Restructuring and Asset Return: As of 24 de sept. de 2025, Celsius is restructuring post-bankruptcy, returning $3 billion in assets and creating Ionic Digital Inc. This positive news, signaling a potential recovery for creditors, could be fueling investor optimism.
- Token Burn: Celsius (CEL) decreased its supply by 94% at the end of April, sending 94% of outstanding tokens to a burn address. This drastic reduction in supply, according to reports from 24 de sept. de 2025, surprised the markets and triggered a rally.
- Speculative Trading: The inherent volatility of the cryptocurrency market, coupled with the high-risk, high-reward nature of a token tied to a bankrupt company, attracts speculative traders who hope to profit from short-term price swings. The Celsius Network’s native token, CEL, witnessed an impressive price surge of over 300% just a month after the bankrupt crypto lender began a massive repayment.
- Defiance Amidst Controversy: Even negative news, such as Celsius Founder’s 20-Year Sentence, oddly triggered a 70% surge in the CEL token price. This counterintuitive reaction suggests a community rallying around the token, or perhaps, further speculative activity.
The Alex Mashinsky Factor
The situation surrounding Alex Mashinsky, founder of the bankrupt Celsius, is complex. Alex Mashinsky faces up to 20 years in prison as the US Department of Justice targets his role in the Celsius Network’s $7 billion fraud scheme. Despite Mashinsky\'s legal troubles, the CEL token appears to be somewhat insulated, or at least reacting independently, to the news.
Is the CEL Rally Sustainable?
The long-term sustainability of the CEL token\'s price remains highly uncertain. While the restructuring, asset return, and token burn offer potential upside, the company\'s bankruptcy and the legal challenges faced by its founder present significant risks. Investors should exercise extreme caution and conduct thorough research before investing in CEL.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves significant risk, and you could lose your entire investment.