Celsius Network Executes Token Burn and CEL Values ​​More Than 150%

In a post-bankruptcy strategic move, Celsius Network incinerated a substantial amount of its CEL tokens, removing around 94% of its total supply from the market. This action significantly reduced the number of tokens in circulation, which could positively influence their market value.

On April 30, the company sent 652.2 million CEL tokens to an inaccessible address, known as a null address, ensuring the permanent removal of these digital assets from the crypto economy. According to the Etherscan analysis platform, these tokens were valued at around 83.2 million dollars, considering the current market price.

This reduction in the available volume of CEL tokens to just 40.6 million, according to the latest data, implies a possible increase in their value, given the law of supply and demand. If demand remains constant, the shortage could increase prices even further.

Before the burn event, CEL’s market value experienced a brief appreciation, rising from 0.130 to $0.3373 dollars, an increase of 150% in the last 24 hours.

The token burning process was one of the key elements in Celsius’ reorganization plan following its declaration of bankruptcy in September 2023. The company had committed to eliminating all CEL tokens it held by the restructuring effective date. “This step is essential to align the company’s interests with the long-term health and financial stability of our network,” commented a Celsius spokesperson.

The adjustment in the value of CEL tokens, set at $0.25 for accounting purposes, was justified by the company as a necessary measure, regardless of market fluctuations or Celsius’ own internal actions.

In addition to burning tokens, Celsius announced in February the distribution of $3 billion in crypto assets to its creditors, marking an important phase in its attempt to recover and compensate those affected by its previous financial difficulties.

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