The Celsius (CEL-USD) network has seen its fair share of attention in recent weeks. Now, it continues onward in the spotlight. Investors are sending CEL crypto prices sky-high today on the back of a new retail investing campaign: #CELShortSqueeze.
Celsius is one of the industry’s premier DeFi platforms. It allows users to buy and trade cryptos, stake one’s assets for passive income and even borrow crypto using a collateralized loan model. Today, over 1.7 million investors make up the Celsius user base. Platforms like Celsius have become a popular way for people to receive banking services without a traditional bank account.
The recent interest in Celsius comes as a result of the recent crypto crash. Of course, Bitcoin (BTC-USD) prices continue to tank. The coin even dropped below $20,000 over the past weekend. As this market crash began last week, Celsius ended up infuriating its users. The company decided to freeze all withdrawals, preventing anybody from moving their assets off of the platform. Celsius asserts that the freeze was meant to maintain liquidity on its different products in the face of rampant volatility.
The controversial move did lead to a downturn for the CEL crypto. Prices dipped 70% in response to the news. Additionally, investors began heaping criticism on the network, drawing comparisons between the freeze and Robinhood’s (NASDAQ:HOOD) freeze on meme-stock trading early last year. Now, it looks like investors are leveraging the chatter for a big growth opportunity.
#CELShortSqueeze Campaign Leads to 30% Upswing for CEL
The CEL crypto, after its incredible losses last week, is seeing some sizable gains today. A Twitter campaign bearing the hashtag #CELShortSqueeze shows why. Apparently, some are taking aim at CEL in the aftermath of its freeze. Now, investors are mobilizing to squeeze prices higher.
One user at the forefront of the short squeeze provides explanation behind it on Twitter. Essentially, they detail that CEL is a low-liquidity cryptocurrency. In the days since the withdrawal freeze, the amount of short positions in the CEL crypto have been growing. With only 1 million spot shorts at the end of May, the coin saw 17 million spot shorts the day after the freeze.
With this in mind, investors are teaming up to drain CEL liquidity from the biggest exchanges offering the coin. This campaign is squeezing CEL prices up massively. Indeed, the coin is gaining over 37% today as the #CELShortSqueeze hashtag continues to make the rounds on social media.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
