A bid to value CEL tokens at $0.80, which was the listed price on the day of bankruptcy, has met with an unfortunate end. The effort fell short amid stiff opposition, leading to a proposed wind-up plan with a significantly lower valuation of $0.25. Two holders of the indigenous token, Santos Caceres and Otis Davis, ardently came forward to argue on behalf of the token’s worth in the court.
Their contention highlights the volatility and unpredictable nature of crypto markets. They argued that CEL should retain its value of $0.80, the price during trading on the day the crypto lender filed for bankruptcy in July 2022. However, the reality of trading prices being susceptible to market manipulations came crashing down on their plea. Shedding light on this, the company itself remarked that the court could have potentially set a lower or even zero valuation, in line with the expectations of stockholders in a bankruptcy situation.
An interesting twist follows in the rejection of the proposal by Judge Martin Glenn for the inclusion of a special committee of CEL holders in the bankruptcy negotiations. The judge’s decision refrained from entangling the court proceedings in a heated feud with the Securities and Exchange Commission regarding the regulatory status of CEL and other cryptoassets.
In order to resolve the company affairs and speed up a sale to crypto consortium Fahrenheit, Celsius’ management has put forth a proposal to value CEL at $0.25. This valuation is up from a previous attempt at $0.20.
On the darker side of this crypto rollercoaster, the company’s decorated then-Chief Executive Officer, Alex Mashinsky, fell from grace and got entwined in legal hassles. The market in CEL was chiefly driven by the company itself, said an independent examiner, which predominantly served the profits of insiders like Mashinsky. The legal authorities have since charged him with market manipulation, to which he has pleaded not guilty.
As the crypto world waits with bated breath, a month remains for the creditors to ponder over and cast their votes on the sale plan. The saga continues to serve as a reminder of the risk and uncertainty enveloping the burgeoning blockchain universe.
Source: Coindesk
