An Ethereum (ETH)-based altcoin has soared in triple digits over the past 30 days. Surprising investors with its rise, the cryptocurrency is among the top 100 assets by market capitalization.
This altcoin on Binance has increased by 750% in 2 months
The altcoin is none other than the CEL coin, which is in the market as the native token of Celsius Network. The token closed the day at $0.735 on July 12. However, it has managed to record a 223% increase since then. At the time of writing, it was trading at $2.38 and was ranked 60th by market cap. In fact, the coin hit its lowest level in mid-June at $0.28. As we reported as Kriptokoin.com, Celsius Network came to the fore at that time with liquidity difficulties and stopping withdrawals. However, the CEL rebounded after falling to $0.28. It has managed to gain 750% to date, from $0.28 in mid-June. The rise caught the attention of investors as Celsius Network filed for bankruptcy in the US last month. So what caused the token of the project on the verge of bankruptcy to make huge gains?
Why is the Celsius Network (CEL) rising?
First, news emerged that Ripple is interested in purchasing assets under Celsius Network. According to the Reuters report, a Ripple Labs spokesperson stated that the company is interested in learning about the network and its assets. They are also interested in knowing whether the assets in question will be relevant to Ripple’s business. Ripple is one of the biggest names in the crypto space. The company’s interest therefore appears to be a potential reason for Celsius Network’s surge. However, Ripple is currently facing its own problems. The company is at war with the SEC and is accused of selling unregistered securities.
Second, Celsius Network paid off several debts, including a Bitcoin loan to Maker Protocol. The network also managed to pay off the Compound loan without any problems. Paying back debts also seems to be a reason for the network to shine. So it is possible that the altcoin project has regained some of the trust lost in the events that have unfolded in the past months. In addition, the company has released a restructuring plan that investors are happy with. Celsius Network plans to pay off all remaining debts with its Bitcoin mining ventures. According to available data, CEL owes its users about $4 billion.
Investigations are ongoing
However, the company has a lot of dark clouds over it. It is being investigated by Canadian controllers for its collapse. Due to the cross-border nature of the issue, the SEC and Canadian officials are working together on the investigation. According to recent reports, the SEC also continues to cooperate with authorities in a number of states, including Texas.
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