Celsius (CEL) Slips 5.58%: Leaked Audio Reveals Compensation Plan

Celsius (CEL) slips 5.58% in seven days to trade at the $1.476 level. Customers’ assets have been frozen since bankrupt cryptocurrency lender Celsius banned withdrawals in June. Now, leaked audio obtained by CNBC exposes a preliminary compensation scheme. Customers signing up for some of the company’s accounts will receive an “IOU” cryptocurrency.

Nuke Goldstein, the co-founder of Celsius, is heard on the audio outlining a reimbursement scheme for consumers who put money into Celsius’ “Earn” account, where the company had previously guaranteed returns of up to 17%.

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Celsius May Repay Wrapped Assets

According to a newly leaked recording, Celsius Network executives are considering repaying clients by releasing new wrapped assets for trading on other platforms. Tiffany Fong, a Celsius client and well-known person in charge of disseminating the previously leaked all-hands meeting recording, provided the audio.

Fong claims she received the new tape instead of the leaked all-hands meeting recording on September 1. Nuke Goldstein, the company’s co-founder and chief technology officer, appears to go into greater detail about the plan to compensate Earn customers.

The goal is to create wrapped tokens known as Cx tokens. It will represent the ratio of what the company owes to what it has by first depositing Celsius’ remaining customer payback funds into wallets. Customers who keep their bitcoin, for example, will receive CxBTC tokens.

Customers can either redeem their wrapped tokens or wait until additional funds become available. In addition to ETH revenue from staked bets, Goldstein mentioned additional currencies that could become liquid. Customers, according to Goldstein, could trade the wrapped tokens in addition to redeeming them.

Celsius Attempts to Revive

In a recording made public two weeks ago, CEO Alex Mashinsky described a proposal to revive the firm, code-named Kelvin, at a company all-hands meeting. The creditor committee accepted Mashinsky’s appointment with them and the presentation of a plan. The creditor committee represents the interests of creditors and consumers in bankruptcy proceedings.

Celsius filed for Chapter 11 bankruptcy protection in July, citing “extreme” market conditions. The case is currently being heard in court. The company stated that its three business entities held stablecoins worth $23 million. The company did not specify which of its 11 stablecoins it currently holds.

According to a court document, the insolvent cryptocurrency lender filed a motion with the bankruptcy court on September 15 asking for permission to liquidate its stablecoin assets to pay for its Chapter 11 proceedings.

The New Jersey-based company intends to sell its existing stablecoins and any additional ones it may acquire to fund operating expenses. If the sale is approved by presiding Judge Martin Glenn, the most senior bankruptcy judge in the United States, the proceeds will primarily fund Celsius Network’s operations.

Celsius (CEL) Price Review & Technical Outlook

The current Celsius price is $1.47, and the 24-hour trading volume is $6,487,565. Celsius has fallen by 4.99% in the previous 24 hours and more than 5% in the last seven days.

With a live market cap of $350,837,890, CoinMarketCap now ranks #96. It has a total circulation quantity of 695,658,160 CEL coins and a circulating supply of 238,863,520 CEL coins.

Celsius Price Chart – Source: Tradingview

On the technical front, CEL/USD is gaining immediate support near the $1.47 level, which is being extended by an upward trendline. A break below the upward trend is likely to extend the selling trend until $1.348.

Whereas, increased selling pressure could slice through CEL below the $1.348 level and open a further selling trend until $1.08. On the upside, CEL’s immediate resistance stays at $1.688 or $1.923. Consider looking for a sell trade under $1.600 and vice versa.

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