Celsius Network burns entirety of its CEL holdings, eliminating 94% of total supply

Celsius Network burned its CEL holdings, representing the bulk of the token supply, connected April 30.

Etherscan indicates the institution burned 652.2 cardinal CEL by sending it to a null address.

The burned magnitude represents 94% of the erstwhile full supply, which amounted to 692.8 cardinal CEL, valued astatine astir $83.2 cardinal astatine existent marketplace price.

The transaction reduced the remaining token proviso to 40.6 cardinal CEL, based connected CoinGecko information — which has been updated to bespeak the burned magnitude arsenic of property time.

The transaction originated from a wallet controlled by Celsius, based connected Arkham Intelligence data.

Arkham Intelligence information identified the sending code arsenic belonging to Celsius Network.

Impact connected marketplace value

The transaction has implications for CEL’s marketplace value. Token burns trim supply, and the asset’s terms could emergence if it experiences continued demand.

Current marketplace information shows a flimsy terms increase. The worth of CEL roseate from 13.0 to 13.7 cents successful the hours astir the pain transaction, representing a 5% increase.

The alteration is little notable implicit the day, arsenic some CEL and the crypto marketplace person experienced much important losses. The full crypto marketplace is down 4.4% implicit 24 hours, and the terms of CEL was comparably down 5.3% implicit the aforesaid period.

Bankruptcy pain plans

In September 2023, Celsius submitted a filing successful its bankruptcy lawsuit stating that it intended to pain each CEL tokens successful its possession connected the effectual day of the reorganization plan.

Celsius noted that it could lone pain tokens nether its possession, adding that it could not “cancel” each CEL tokens oregon forestall trading connected exchanges.

In context, Celsius raised the anticipation of a token pain to reason that it needed to delegate immoderate oregon nary worth to the CEL token careless of what it did with its holdings. It argued that $0.25 per token was an due valuation for the asset.

In January, Celsius announced plans to administer $3 cardinal successful crypto to creditors. The institution did not explicitly picture a pain successful its nationalist announcement connected the effectual date.

Celsius did not respond to CryptoSlate’s petition for comment.

The station Celsius Network burns entirety of its CEL holdings, eliminating 94% of full supply appeared archetypal connected CryptoSlate.