Celsius Issues Recovery Plan Amid Community-led Short-Squeeze Attempt
2022.06.20 12:02
Celsius Issues Recovery Plan Amid Community-led Short-Squeeze Attempt
- Celsius Network has issued a note to the public detailing how the team plans to weather an attempted short squeeze by a group of retail investors.
- The note comes in response to recent events that saw the company collapse.
- BnkToTheFuture will assist Celsius through a recovery program similar to Bitfinex’s recovery plan in 2016.
Celsius Network has issued a public notice through its official blog, disclosing how the team plans to weather a short squeeze initiated by a group of retail investors. The note comes in response to recent events that saw the company’s stock price collapse.
Simon Dixon, the co-founder of BnkToTheFuture and an advisor to Celsius Network, has volunteered to assist the network through a “financial innovation” similar to the one used in 2016 to save cryptocurrency exchange Bitfinex from liquidation.
Notably, Dixon claims that the solution to the Bitfinex 2016 was resolved within nine months.
Although no intricate details about the recovery strategy shared with Celsius board member and CEO Alex Mashinsky were made public, Dixon believes that the plan will be successful and result in minimal losses for token holders.
Furthermore, Dixon says that the team is currently working on implementing the plan and will provide updates in the coming days.
Celsius Network Issues Recovery Plan Amid Community-led Short-Squeeze Attempt.
Dixon noted that as a Celsius shareholder and lender, he was eager to assist with a recovery plan since the ‘short-term systemic impact is on those who own Bitcoin.
However, an unorganized community-led recovery plan has recently begun to take hold on Twitter (NYSE:TWTR) under the hashtag #CELShortSqueeze.
The Celsius token movement is attempting to force short-sellers of the Celsius token to cover their positions by pumping up the price of the CEL token through large purchases and withdrawals of the CEL token from various exchanges.
The Celsius Network has been trying to recover as it was just reported that the group engaged a counsel to assist with the platform’s restructuring for a revival. However, Celsius announced that they paused their Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill their responsibilities to the community.
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