Alex Mashinsky, the CEO of Celcius Network, resigned, pushing the price of CEL lower on Tuesday 27th. Investors sold a large portion of their holdings as the coin fell from $1.49 to $1.35 in a matter of minutes. Now, the Chief Financial Officer (CFO) Chris Ferraro, will take on the leading role as CEO of the company.
Celsius Network (CEL) Plummets
In a recently posted press release, Celcius Network CEO Alex Mashinsky submitted a letter of resignation with immediate effect. He has also informed the community that he remains available in order to continue working with the organisation in case it’s needed. He believes that “Celcians” will be able to get more if they stay united in these difficult times.
The resignation letter reads as follows:
“Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at Celsius Network Ltd. I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing.”
He went on to say that since the pause he has been working to help the company and advisors create and build a viable plan in order to return coins to creditors in a fair way.
It is worth pointing out that Celcius owed users close to $4.7 billion in a bankruptcy filing presented earlier this year. The company’s balance sheet shows that there is a massive $1.2 billion financial hole.
According to data shared by CoinGecko, Celsius Network (CEL) has fallen to $1.35 a few hours ago as soon as the resignation letter was made public. Despite a fast recovery to $1.43, the coin was traded at close to $1.50 before the announcement.
While cryptocurrencies experienced a positive morning, Celcius is still down by over 8% in the last 7 days. In just a year, this digital currency lost 72% of its value. This is something that happened to other digital currencies as well. Since November 2021, Bitcoin (BTC) and other cryptocurrencies entered a bear trend that lasts until today.
Celsius Network is now being affected by the departure of its former CEO. However, there might be an opportunity for this crypto project to build better and more secure systems in order to offer investors reliable and useful solutions. In the short term, the new CEO will have to focus on a new strategy that would help the company pay its debts and help users get their funds back as soon as possible.
This is something that might require time and that is not so easy to do. Therefore, CEL holders should be focused on what’s coming and how they could recover part of their money. Meanwhile, they will also have to think about how to recover from the most recent price decrease.
At the time of writing this article, CEL has a price per coin of $1.43 and a market capitalization of $600 million as reported by CoinGecko.