What happened
As of 11:45 a.m. ET, Celsius Network (CEL) fell as much as 20.6% from peak to trough in the past 24 hours and is currently down 13.5%. This was a surprise given the fact that crypto stocks are moving higher for the most part today.
So what
The company, which is in bankruptcy proceedings, filed a countersuit on Tuesday against investment manager Jason Stone and his company, KeyFi, accusing them of losing or stealing tens of millions of dollars in assets. This follows a lawsuit filed by KeyFi against Celsius Network last month alleging market manipulation and more.
We don't know how these lawsuits will play out, but the mess continues to get worse. Right now, it's not clear when Celsius Network will emerge from bankruptcy protection, if customers will get their funds back, or what value the token will have. Right now, I wouldn't be betting on a resolution anytime soon, and that could send this cryptocurrency much lower.
Now what
Just because a token exists doesn't mean it has to have value. The Celsius Network token was a part of the company's lending platform, but now that the company is in bankruptcy protection, I don't know why the token would have any value. Lenders have likely lost most of their money, and borrowers may not get attractive terms on the platform in the future. So, a token at the center of a lending platform with no value shouldn't have any value, either.
The drop came after the lawsuit news today, but given the bankruptcy filing of the parent company, I wouldn't buy this token no matter the price.
