Celsius CEL
About
What Is Celsius (CEL)?
Celsius (CEL) is an all-in-one banking and financial services platform for cryptocurrency users.
Launched in June 2018, it offers rewards for depositing cryptocurrency, along with services such as loans and wallet-style payments.
Users of the platform receive regular payouts and interest on their holdings. Celsius’ native token, CEL, performs a variety of internal functions, including boosting user payouts if used as the payment currency.
Who Are the Founders of Celsius?
Celsius originally came into being as the product of creators Alex Mashinsky and Daniel Leon in 2017.
Mashinsky has a long-running history in the internet development sphere, having worked on the Voice Over Internet Protocol (VOIP) in the 1990s and other technologies since. Celsius is far from Mashinsky’s first corporate venture, with seven startups and 35 patents to his name, the project’s official website states.
Co-founder and COO Daniel Leon meanwhile has experience focusing on growing early-stage startups. His previous roles include being CEO of Atlis Labs, a social recommendation and discovery app which used real-time user referrals.
Celsius now has a large team of core employees, technical developers and advisors with experience in various spheres.
What Makes Celsius Unique?
Celsius aims to outperform banks at their own game by offering financial services on the kind of terms which traditional financial institutions no longer offer.
These include much higher rates of returns on savings and deposits, much easier and fairer loan requirements and automated rewards computed for each user algorithmically. Penalties and bank-style fees are also waived.
The platform also functions as a wallet via its CelPay feature, and hosts its own CEL token which users can leverage to increase payout value among other things.
As a for-profit company, Celsius takes a cut of profit margins on interest payments, still returning 80% to users themselves. The company also lends to institutional entities such as hedge funds.
Payments are ensured because loans are asset-backed, and any borrower must supply more than 100% of what they borrow in the destination currency.
How Many Celsius (CEL) Coins Are There in Circulation?
The native token of Celsius is CEL. It performs a number of user-related functions and is freely tradable outside the platform.
CEL has a maximum supply of 695,658,161 tokens, of which 76% are in circulation and 24% are locked according to a schedule laid out in the project’s technical literature.
CEL had an initial coin offering (ICO) in May 2018. The presale and crowdsale took 50% of the token supply, with 27% going to the treasury, 19% to the team and 2% to partners and advertisers respectively.
CEL is an ERC-20 standard token on Ethereum.
How Is the Celsius Network Secured?
Celsius uses a modified proof-of-stake algorithm for its token, while broader security procedures were outlined in a dedicated presentation in June 2020, still available on the company’s website.
As with any client-orientated wallet, the risk of theft from attacks such as SIM-swapping is present if users themselves do not have adequate protections in place such as two-factor authentication.
Where Can You Buy Celsius (CEL)?
CEL is a publicly-tradable token on major exchanges, with pairs available for cryptocurrencies and stablecoins.
As of October 2020, automated market makers (AMMs) held the lion’s share of trading volume, with popular pairs being for Bitcoin (BTC) and Wrapped Ether (WETH).
New to cryptocurrency? Read our easy guide to buying Bitcoin or any other cryptocurrency.
AI Analysis
What is the Celsius (CEL) cryptocurrency good for? What are its main use cases?
Celsius (CEL) is a cryptocurrency and part of the Celsius Network, which is a platform designed to offer various financial services related to digital assets. The CEL token has several use cases within the Celsius ecosystem, including:
Interest-Earning Accounts: Celsius allows users to earn interest on their cryptocurrency holdings. By using CEL, users can boost their interest rates or receive higher yields compared to earning interest with other cryptocurrencies.
Lending and Borrowing: Users can take out loans using their crypto as collateral. Holding CEL may offer benefits such as lower interest rates on loans, making it more attractive for users who intend to borrow.
Cashback and Rewards: Holding or using CEL can entitle users to cashback rewards on certain transactions or improve their overall earning rates on deposits within the Celsius Network.
Community Governance: CEL holders may have a say in certain platform decisions, contributing to community governance initiatives and influencing the future development of the Celsius Network.
Transaction Fees: CEL can be used to pay transaction fees on the Celsius platform, potentially allowing users to save on costs when engaging with the platform.
Incentives and Promotions: Celsius often runs promotional campaigns that reward users for holding CEL or using it in specific ways, which can include bonuses or increased interest rates.
Overall, CEL plays a key role in incentivizing user engagement with the Celsius Network, promoting community participation, and enhancing the overall user experience within the platform.
What blockchain does Celsius use? Is it its own blockchain or built on top of another?
Celsius Network initially operated primarily on the Ethereum blockchain, utilizing ERC-20 tokens for its crypto assets. It did not have its own independent blockchain but instead relied on Ethereum's infrastructure for transactions and smart contracts. In addition, Celsius has integrated other blockchains, including Bitcoin and Litecoin, to support various cryptocurrencies within its platform. However, it is important to note that Celsius faced significant financial challenges and filed for bankruptcy in July 2022, which has affected its operations. Always check the latest updates for any changes regarding their infrastructure or services.
Is Celsius programmable? Does it support smart contracts or decentralized applications?
Celsius Network, as of my last knowledge update in October 2023, is primarily a platform for cryptocurrency lending and borrowing, as well as earning interest on crypto holdings. It does not natively support programmable features like smart contracts or decentralized applications (dApps) in the way that platforms like Ethereum do.
Celsius operates more as a centralized service that provides users with financial products related to digital assets rather than as a decentralized protocol. Users can earn interest on their crypto or take out loans against their crypto holdings, but the underlying technology does not facilitate the deployment of smart contracts or allow for the development of dApps directly on the Celsius platform.
For users specifically looking to engage with programmable functions or develop decentralized applications, platforms that are designed for that purpose, such as Ethereum, Binance Smart Chain, or Solana, would be more appropriate choices.
Please verify with the latest resources or the Celsius Network’s official website for the most current offerings or changes to their platform.
How fast are Celsius transactions? What is the typical confirmation time and throughput (transactions per second)?
Celsius Network, which is primarily known as a cryptocurrency lending and borrowing platform, does not process transactions in the same manner as a blockchain network. Instead, it facilitates cryptocurrency transactions using underlying blockchain protocols like Bitcoin, Ethereum, and others.
For the specific blockchain networks, transaction speeds and throughput vary:
- Bitcoin: Typically has a block time of around 10 minutes, with a throughput of about 3-7 transactions per second (TPS).
- Ethereum: Has a block time of around 15 seconds and a throughput of approximately 30 transactions per second, though this can vary depending on network congestion.
- Other blockchains: Various other blockchains, like Binance Smart Chain, Solana, or Cardano, can have significantly faster transaction times and higher throughput.
For Celsius, transactions are generally handled efficiently on the backend, focusing on user experience and liquidity. The actual confirmation time for deposit and withdrawal transactions can depend on the underlying blockchain's current state, network traffic, and the type of cryptocurrency involved.
If you're asking specifically about the transactions within the Celsius platform itself (e.g., transfers of assets between users within Celsius), those typically happen almost instantly due to the centralized nature of the platform. Always refer to the latest information from Celsius's official channels for the most accurate and context-specific details.
How much data can I store on the Celsius blockchain? Does it support on-chain data storage?
As of my last knowledge update in October 2023, the Celsius blockchain primarily focuses on providing services related to lending and borrowing in the cryptocurrency space, rather than being designed for general-purpose on-chain data storage like some other blockchains (e.g., Ethereum or IPFS).
Celsius does not typically offer features for on-chain data storage like smart contracts or decentralized applications that would allow for significant data storage on the blockchain. Its architecture is mainly centered around financial transactions, user wallets, and managing digital assets.
If you're looking for a blockchain specifically for data storage, consider other options tailored for that use case, such as Filecoin, Arweave, or the aforementioned Ethereum (via decentralized storage solutions). Always check the latest documentation or announcements from Celsius for any updates or changes to their services, as my information might not be the most current.
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