Despite the difficulties faced by the exchange, such as bankruptcy and reports of the company’s CEO leaving the United States, the Celsius (CEL) community has come together on Twitter once more to combat short positions against their preferred crypto asset, as reported by Cointelegraph.
Short-selling is a tactic that enables investors to profit from a token’s or share’s decline. It entails borrowing shares, selling them right away, and then buying them again at a cheaper price later. On the other hand, a short squeeze occurs when rival investors begin to buy in large quantities a shorted asset, causing the price to increase rather than drop, which results in losses for short sellers, Cointelegraph noted.
This is not the first time the Celsius community has attempted to crush CEL briefly. In June, members of the “Celsians” community developed an unofficial recovery strategy to push CEL short-sellers to cover their holdings by raising the price of the token.
The business’s attorneys claim that its 1.7 million registered users waived their legal rights to their digital assets when the bankruptcy petition was filed. Lawyer David Silver summarised Celsius’s claims by saying that users of cryptocurrency deposited in Earn and Borrow accounts should stop thinking of the assets as their own.
(With insights from Cointelegraph)