1/ The Case for the #CELShortSqueeze — $GME 2.0?
Dream setup for a short squeeze. Approximately 87% of $CEL token supply is locked on @celsiusnetwork (withdrawals are frozen) & $CEL token is being massively shorted on FTX.
2/ TLDR
• Shorts borrowed approx. 18 million $CEL on @FTX, sold them to market on FTX & other exchanges. $CEL token price crashed to $0.20.
• Now shorts must buy back $CEL tokens; however if the price continues to rise, they must be careful not to do so at a loss.
3/ TLDR Cont.
• Shorts put an order in FTX to buy 37 million CEL at $0.01, in an apparent bet that @celsiusnetwork will fail.
• As of writing (6/20/2022): 11,297,429 CEL are available on exchange wallets & shorts have to buy back 4.6 million CEL tokens on FTX.
4/ TLDR - Action Plan (at your own risk! NFA)
• Buy $CEL on exchanges (i.e. FTX), transfer $CEL to private wallets and/or set limit orders on @1inch for $100 each.
• Enter #CELShortSqueeze 🚀
5/ What’s a Short Squeeze?
Rare occurrences that begin when price of a heavily shorted security/crypto begins increasing. When short-sellers are forced to purchase shares to cover their positions, causes a rapid increase in price of said security, reinforcing the price to rise.
6/ Potential for a #CELShortSqueeze?
Why are shorts in trouble? $CEL is a low-liquidity token. Because Celsius paused withdrawals, an est. 87% of $CEL tokens are locked. This means there’s very little liquidity for shorts to buy $CEL on the open market & cover their positions.
7/ Total $CEL supply = 695 million. Treasury owns approx. 320 mil. Top 500 owns approx. 100 mil, which people took loans against their $CEL (then got liquidated & is in the treasury). Any remaining $CEL is earning interest in people’s Celsius wallets & unable to be withdrawn.
8/ We experienced a squeeze on 6/14/2022 when shorts bought back 1.5 million $CEL & the price spiked to $2.
Imagine what happens to the price of $CEL when the shorts buy back the rest of their shorted tokens?
9/ So if you’re short $CEL, what do you do? You offer 2,600% APY to anyone who is willing to lend you $CEL token, which is exactly what’s happening right now on FTX! The shorts are desperate — a la Melvin Capital in the GameStop saga.
10/ Action Plan
🚨 Disclaimer: This is NFA. We are speculating. This is high risk. You should always DYOR 🚨
• Buy $CEL tokens on @FTX
• FTX is not avail in USA — can purchase on @Uniswap
• Send tokens to private wallet
• Limit sell order to $100 on @1inch
• SQUEEZE! 🚀
11/ For more information, please reference original Twitter thread thesis by @otisa502 here:
twitter.com/otisa502/status/1537170718001078274?s=20&t=FBNVqFi88byqpANUnhZOsA!
12/ Prefer to read in article form? Check out the Medium here!
medium.com/@cryptoismyjam/the-case-for-the-celshortsqueeze-gme-2-0-4587fcee13ba
13/ I'd love the thoughts of our sharpest DeFi minds on the potential #CELShortSqueeze! Can we get a threadooor? @thedefiedge @milesdeutscher @nickdrakon 🙏