What is Celsius (CEL)?

What is Celsius (CEL)?

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Celsius Network is a regulated, SEC-compliant blockchain-based network and a comprehensive lending platform that allows customers to earn interest on cryptocurrencies deposited or to take out crypto collateralized loans.

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Celsius intends to attract customers by paying high interest on savings while keeping the perks associated with conventional financial institutions, such as rapid, fee-free transactions.

For current cryptocurrency investors interested in obtaining a loan, Celsius enables them to do so without liquidating their bitcoin holdings. The system is built on its native coin CEL, which is used to issue loans, reward users, and conduct transactions.

Additionally, Celsius offers a loyalty program in which status is determined by the value of CEL in the user's portfolio. As a member advances through the tiers, they get extra prizes and interest reductions on loans.

 

Component Celsius (CEL)
Technologies CelPay, Proof of Stake
Market Capitalization $780.2 Million+
Open-Source Yes
Consensus Mechanism Proof of Stake
Smart Contracts Yes
Founders/Authors Alex Mashinsky, Daniel Leon, Nuke Goldstein
Launch Date 2017
Circulating Supply of Coins 238,863,520 CEL
Maximum Coin Supply 695,658,160 CEL
Mining-based Coin? No
Is Celsius a Stablecoin? No
Does Celsius have a burn rate? Yes
Does Celsius have a Whitepaper? Yes, the white paper can be viewed here 

 

Evolution and Development of Celsius

Celsius Network was formed in 2017 in London by Alex Mashinsky, S. Daniel Leon, and Nuke Goldstein.

Mashinsky has a lengthy background in the field of internet development, having worked on Voice Over Internet Protocol (VOIP) in the 1990s and on several other technologies since then. Celsius is not the first attempt that Mashinsky has made at business, but the seventh. 

In addition, he also has 35 patents to his name, according to the official Celsius website. Daniel Leon, co-founder, and COO, on the other hand, has expertise in building early-stage firms.

Previously, he served as CEO of Atlis Labs, a social recommendation and discovery application that relied on real-time user recommendations.

Celsius conducted an Initial Coin Offering (ICO) in 2018, collecting around $50 million with the sale of 325 million CEL.

Celsius has grown to a sizeable team of core workers, technical engineers, and consultants with diverse backgrounds.

 

What makes Celsius unique?

Celsius intends to outperform banks by delivering financial services on conditions that conventional financial institutions are no longer willing to supply.

These include much greater rates of return on savings and deposits, significantly simpler and more equitable lending conditions, and automatic incentives generated algorithmically for each customer. Additionally, penalties and bank-style fees are eliminated.

Through its CelPay feature, the site also works as a wallet and contains its own CEL currency, which users may utilize to improve payment value, among other things.

The Celsius Network is a blockchain-based financial technology network that anybody with a smartphone can access. The Celsius Network's range of lending, yield generating, and payment solutions enable access to financial services and terms not accessible via traditional banks.

At its heart, Celsius's goal is straightforward: provide financial services while acting in the community's best interests, not those of intermediaries. The Celsius Network's community-first mission subverts the conventional financial services model and enables a radical alternative. Celsius provides 80% of its earnings to consumers in the form of incentives and competitive savings rates.

This is accomplished by the over-collateralization of crypto loans alongside rehypothecation. 

Over-collateralization of crypto loans alongside rehypothecation. Rather than borrowing cryptocurrency from a variety of unreliable sources, investors such as hedge funds may borrow cryptocurrency from a single, reputable source: the Celsius Network.

By pooling cryptocurrencies into a single huge pool, Celsius provides an intriguing option for major institutional investors searching for a safe onramp to the crypto market. Celsius reinvests the money it collects from these investors, with 80% of revenues distributed to Celsius Network users, while 20% is utilized to finance platform development.

 

What are the main uses for Celsius?

The CEL token powers the Celsius Network's earning and reward mechanisms. A smart contract locked the remaining 50% of the tokens in a smart contract, with 25% going to the founding team. The locked tokens will go into circulation if CEL stays over $1.50 for 10 days and then above $3 for 30 days.

The CEL token provides specific advantages to each Celsius user group:

  • Earners: By accepting CEL incentives, earners gain up to 30% higher rewards on any non-CEL token deposits.
  • Borrowers save up to 30% by paying interest using CEL tokens.
  • Institutions: Paying interest using CEL tokens saves institutions 30% on interest payments.

 

In the absence of a conventional credit card, Celsius offers CelPay, a crypto payment tool that enables you to send crypto to anybody, even if they do not have one.

When transmitting crypto, CelPay produces a shareable link that establishes a CelPay wallet when clicked. Unlike conventional remittance networks, Celsius transfers are free and operate with any currencies listed on the app.

 

What is the future potential for Celsius?

Despite growing support for decentralized banking, fintech start-ups such as The Celsius Network are experimenting with the gap between centralization and decentralization.

This intermediate ground is an inevitable steppingstone toward a completely decentralized future and the associated advantages. Celsius effectively navigates this paradigm by delivering a platform that rewards and simplifies financial services via the use of a utility token (CEL) across network elements.

As an increasing number of individuals become interested in banking, fintech and DeFi will surely serve as critical and complementary portals to the future generation of finance. The Celsius Network is an excellent illustration of the value that this interaction may uncover.

 

Price analysis on Celsius

Celsius was initially launched in 2017, with price data only going back as far as 2018 as follows:

 

  2018 2019 2020 2021 to date
CEL Price High $0.068 $0.158 $5.581 $8.013
CEL Price Low $0.026 $0.026 $0.053 $3.107
Market Cap $1.33B $1.91B

 

Price prediction on Celsius

By the end of this year, the CEL price might reach about $9.67. Price range: $10.71 to $9.31. The average cost might be $9.93.

A long-term rise is anticipated depending on the latest Celsius price and expert estimates; the price expectation for 2026 is $46.484. CEL token revenue is estimated to be +625.52% during five years, making it a rewarding investment.

 

Which wallets are the best option for storing Celsius?

The best options to store, send, and receive Celsius (CEL) are as follows:

  1. Trust Wallet
  2. MyEtherWallet
  3. Atomic Wallet
  4. Ledger Nano S

 

1. Trust Wallet: Trust Wallet serves as a link between individual blockchains and their nodes. Trust Wallet assists users in managing their addresses to send and receive Crypto.

Additionally, the software enables the user to carry out additional Crypto-related operations, such as trading and staking.

 

2. MyEtherWallet: MyEtherWallet is a free, open-source client designed specifically for the Ethereum platform. MEW is an easy-to-use, and versatile solution for displaying and managing the user's ERC-20 tokens where the sending, storing and receiving Ether (ETH) tokens and other digital assets are concerned.

 

3. Atomic Wallet: Atomic Wallet is a user interface that allows access to the user's blockchain money. The most crucial information, such as the private keys and backup phrase, is encrypted and kept locally on your device. A password protects the wallet and all its actions.

 

4. Ledger Nano S: Ledger launched the Ledger Nano S in 2016. This wallet is also referred to as the “original hardware wallet.” The Ledger Nano S is one of the cheapest physical cryptocurrency wallet devices available, and it can be used to purchase cryptocurrencies as well as safeguard and manage digital assets.

Best Bitcoin Wallets are the same as Celsius wallets.

Where can you buy Celsius?

Celsius can be bought, sold, and traded on the following crypto exchanges:

  1. FTX Exchange
  2. Bitfinex
  3. Bittrex
  4. Phemex
  5. Loopring

 

1. FTX Exchange: FTX Exchange is a cryptocurrency derivatives exchange that was built by traders for traders as a substitute for leveraged trading. The exchange offers several solutions, including spot trading, derivatives, volatility instruments, leveraged tokens, and options are all part of FTX's product offering.

The exchange's design team is comprised of professionals from Wall Street quant firms and technology businesses such as Facebook and Google.

 

PROS CONS
There is a vast selection of crypto coins to choose from The exchange is not suited to beginner traders
There is a straightforward registration process and KYC is not necessary for the first $1,000 of crypto withdrawals There is a limited selection of fiat deposit options
The chart screen is highly customizable and offers several options The exchange does not serve traders who reside in the United States

 

2. Bitfinex: Bitfinex, founded in 2012 in Hong Kong, is one of the largest and most established Bitcoin exchanges, albeit not without controversy. On any given day, Bitfinex sees over $120 million in trading activity across over 300 different trading pairs.

 

PROS CONS
There is high liquidity for the top tier crypto trading pairs The exchange does not serve users from the United States
There is a vast number of coin pairings available across several backings There is a history of hacking attempts
There is support for a vast range of fiat deposit options There is heavy KYC, and it can take up to 5 days to process
Users can easily customize the security options on their account There is an association with Tether, which continuously tarnishes the reputation of the exchange

 

3. Bittrex: Bittrex was founded in the United States and has been in business for about six and a half years, making it one of the most established cryptocurrency exchanges.

As an exchange situated in the United States, they take KYC extremely seriously and need it upon registration. This, however, enables it to serve not just US consumers but most of the world's population as well.

 

PROS CONS
There is a vast range of digital currencies available with flexible pairing options There are restrictive KYC policies in place
The exchange is available to users around the world There is no fee discount for market makers and no VIP rewards program
There is decent liquidity offered for top-rated cryptocurrencies The exchange can impose sudden policy changes which limit users to some coins
The system is stable and secure The mobile app has limited functionality
There is a user-friendly interface  
The exchange offers a range of charting capabilities  

 

 

4. Phemex: Phemex is a full-service cryptocurrency exchange. It takes credit card deposits and provides leverage trading of up to 1:100 on the initial deposit of the user. Phemex offers options to earn income and gives premium users free real-time trading.

 

PROS CONS
The exchange has low trading costs and a top-rated mobile app The fee structure is extremely complex
The exchange allows real-time spot investing Withdrawal fees are charged on most cryptocurrencies
There are fiat-to-crypto purchases enabled There are no lending services offered
The exchange supports deposits in a variety of digital currencies  

 

5. Loopring: Loopring is not a decentralized exchange (DEX) but a protocol for decentralized finance (DeFi) on the Ethereum blockchain. It enables DEXs via the use of ring sharing and order matching mechanisms. Loopring enables the cross-exchange of assets across several exchanges.

 

PROS CONS
The DeFi protocol pools various orders from other DEX exchanges and they are subsequently filled There are some security risks because private keys are kept on the exchange
Offers settlement for any type of trade There are transparency risks involved
There are several cryptocurrencies supported along with the native token, LRC  
The exchange is interoperable with several smart contract platforms such as Ethereum and NEO  

You can buy Celsius safely from these cryptocurrency platforms.

Does Celsius use coin burns?

Yes, the number of CEL tokens burnt is determined by weekly earnings and so varies. Now, the quantity of CEL tokens to be burnt equals 10% of total weekly profits. This is an extra 10% on top of the community awards previously handed out.

 

What is Celsius’ largest Competitor?

The largest competitor of Celsius is BlockFi.

The gold standard of cryptocurrency interest programs is BlockFi and Celsius. Both are pioneering the decentralization of huge financial institutions, the bitcoin industry's most infamous adversary.

BlockFi has created a name for itself by attempting to expand standard banking services into the bitcoin sector.

Individuals who utilize the site can earn interest on their digital currencies or use it as collateral for loans – a feature not offered by many rivals. Customers may earn up to 4.5% annual percentage yield on their Bitcoin, based on the amount held on the platform.

BlockFi's innovative approach — fusing elements of the cryptocurrency realm with certain services normally supplied by banks — has drawn considerable regulatory attention.

 

What is the Staking Process involved with Celsius?

Celsius's earning network enables users to borrow bitcoin and earn interest in exchange. The platform now supports over 35 tokens, including BTC, LTC, and ETH, as well as stablecoins like USDT, GUSD, and DAI.

Each staked cryptocurrency's Annual Percentage Yield (APR) represents market demand for that coin. Users who want to receive their interest profits in CEL can expect a 30% increase in rewards.

In contrast to banks that accept fiat currency, Celsius does not demand a minimum balance to begin earning interest. Additionally, there is no lockup time or penalty for not maintaining a minimum balance or withdrawing assets.

With fewer constraints and better returns, the Celsius Network provides a fundamentally new value proposition in terms of asset management and holding.

 

What can Celsius smart contracts do?

The Celsius platform is a unique combination of multi-blockchain nodes along with automatic trading across several exchanges. It also includes a high-end user experience and uses smart contracts to reduce rates and maximize the profits of users.

In addition, these smart contracts also work to minimize and manage risks and maintain the overall security and growth of the Celsius ecosystem.

Celsius's loan and borrowing strategy need not just blockchain and open ledger technology but also consensus and a worldwide footprint of currency holders to acquire traction and accomplish our purpose.

Any loan granted may be repaid by thousands of independent coin holders, who may exchange their coins at any moment. Such intricacy can be handled only by a smart contract capable of monitoring and paying in micropayments.

 

Is Celsius a Good Investment?

Yes, Celsius is a good investment.

Celsius is a DeFi platform that offers interest-bearing and crypto-lending products. It is available through PC or mobile app for iOS and Android. 

Celsius members can apply for loans at lower rates immediately. Others who choose to invest their assets might commit not to withdraw them.

Celsius provides CEL tokens, the company's exclusive loyalty incentive token. Additionally, it serves as the primary medium of trade inside the Celsius network.

 

What is the supply and distribution of Celsius?

CEL has a maximum quantity of 695,658,161 tokens, with 76% in circulation and 24% frozen according to a timeline detailed in the project's technical documentation.

In May 2018, CEL held an initial coin offering (ICO). The presale and crowd sale both took 50% of the token supply, with the treasury receiving 27%, the team receiving 19%, and partners and advertising receiving 2%.

 

Is Celsius a viable Alternative Coin?

Yes, Celsius is a good altcoin.

  • Security – Celsius offers robust platform security by using innovative technologies.
  • Technology – Celsius uses innovative technology, including CelPay, Proof of Stake, and others.
  • Price Stability – Celsius presents a stable price
  • Potential Investment – Celsius is a great potential investment based on its real-world usage and future

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Celsius and Bitcoin?

Bitcoin was established to facilitate the movement of funds over the internet. The virtual currency was developed to create a decentralized payment system that could be utilized in the same way as conventional currencies.

Celsius is a centralized loan system built on the Ethereum blockchain. Individuals may borrow from Celsius or deposit crypto assets with the company to be leased out, allowing them to receive interest in return.

 

  Bitcoin Celsius
Price change 20/21 +400% -40%
Market Cap $800 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity Very High
Altcoin Rank #1 – Original Crypto #103

 

What are the differences between Celsius and Ethereum?

Ethereum is an open-source platform that is used to power the world's second-biggest cryptocurrency. Ethereum supports the development and execution of smart contracts and decentralized applications (DApps).

Celsius is a decentralized finance (DeFi) network that specializes in cryptocurrency lending, borrowing, and earning.

 

  Ethereum Celsius
Price change 20/21 +880% -40%
Market Cap $460 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity Very High
Altcoin Rank #2 #103

 

What are the differences between Celsius and Dogecoin?

Dogecoin is one of the most popular cryptocurrency tokens, even though it was created as a joke. It enables investors to make their first excursion into cryptocurrency and get an understanding of volatility.

The mining process, inflationary characteristics, and linkages to Litecoin all add intrigue to Dogecoin. Celsius is a network and platform that has gained a lot of popularity as it enables users to generate a sizable passive income from their crypto holdings, especially when compared to interest rates on fiat-based savings accounts. Celsius Network is one of the most popular crypto loan services now.

 

  Dogecoin Celsius
Price change 20/21 +7,300% -40%
Market Cap $22 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity High
Altcoin Rank #12 #103

 

What are the differences between Celsius and NEO?

Neo digitizes assets via the use of blockchain technology and digital ownership, self-manages digital assets through smart contracts, and creates a “smart economy” through a decentralized system.

The Neo blockchain enables users to register, trade, and exchange a wide range of assets. The Celsius Network is a financial technology (fintech) network that enables users to create interest-bearing savings accounts, borrow money, and make payments using both digital and fiat assets.

Celsius distributes 80% of its earnings to network members in the form of prizes, while the other 20% finances project growth.

 

  NEO Celsius
Price change 20/21 +160% -40%
Market Cap $1.70 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity Medium
Altcoin Rank #69 #103

 

What are the differences between Celsius and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Celsius, on the other hand, is fungible, which means that one CEL has the same value and characteristics as another CEL.

 

What are the differences between Celsius and Solana?

Solana is one of the world's quickest programmable blockchains. It can handle 50,000 transactions per second (TPS).

Thus, the purpose of Solana's design is to show that a mix of software algorithms may remove the software as a performance barrier, allowing transaction throughput to rise proportionately with network bandwidth.

Celsius Network is an SEC-approved lending platform that allows users to earn interest on cryptocurrency deposits and make crypto collateralized loans.

 

  Solana Celsius
Price change 20/21 +9,300% -40%
Market Cap $54 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity Very High
Altcoin Rank #5 #103

 

What are the differences between Celsius and Cardano?

Cardano is the first blockchain platform built on peer-reviewed research and evidence-based methodologies by academics and professionals. To construct a fairer, safer, and more transparent society, Cardano aspires to redistribute power to people.

The Celsius Network is a mobile-friendly blockchain-based financial network. In addition to lending, the Celsius Network's payment solutions provide access to financial services not accessible via traditional banks.

 

  Cardano Celsius
Price change 20/21 +2,100% -40%
Market Cap $42 Billion+ $780.2 Million+
Past Hacks None Yes, BaderDAO hack in 2022
Popularity Very High
Altcoin Rank #7 #103

 

Does Celsius offer lending services to anyone?

 Yes, anyone can use the Celsius network for lending services if they are eighteen years or older, they have a legal ability to be bound by the platform's terms, they comply with the terms, and they register for, and maintain, an active and valid account with Celsius.

 

What is the interest rate when borrowing to Celsius?

United States users can earn up to 13.99% APY, while Non-US clients can earn up to 17.78 APY. The loyalty tier rewards bonus range from 5% on Bronze up to 25% on platinum.

 

How can users earn rewards from Celsius?

Users can earn rewards when they lend cryptocurrencies and earn interest. Furthermore, when users ascend through the tier levels, their interest rate will subsequently increase.

 

Does Celsius require collateral?

Yes, collateral is necessary when lending from the Celsius network. Members can borrow USD using their digital assets as collateral. Our objective is to make it simple for anybody in need of cash to borrow from the Celsius platform without selling bitcoin. You will be able to borrow dollars against your cryptocurrency when the Celsius tokens are created.

 

What collateral is accepted by Celsius?

Celsius currently accepts Bitcoin, Ethereum Celsius, Polkadot, Litecoin, Cardano, and Decentraland as collateral.