What Is Celsius (CEL)?
Celsius is an all-in-one banking and financial services platform for cryptocurrency users (CEL). Launched in June 2018, it offers rewards for depositing cryptocurrency and services such as loans and wallet-style payments.
Users of the platform receive regular payouts and interest on their holdings. Celsius’s native token, CEL, performs various internal functions, including boosting user payouts if used as the payment currency.
Who Are the Founders of Celsius?
Celsius originally came into being 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. CEL 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 have 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.
CEL now has a large team of core employees, technical developers, and advisors with experience.
What Makes Celsius Unique?
Celsius aims to outperform banks at their own game by offering financial services on the kind of terms that traditional financial institutions no longer offer.
These include higher returns on savings and deposits, 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 CEL token, which users can leverage to increase payout value, among other things.
As a for-profit company, Celsius cuts 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 many 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 crowd sale took 50% of the token supply, with 27% going to the treasury, 19% to the team, and 2% to partners and advertisers.
How Is the Celsius Network Secured?
Celsius uses a modified proof-of-stake algorithm for its token. At the same time, broader security procedures were outlined in a dedicated presentation in June 2020, which is 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 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 Bitcoin (BTC) and Wrapped Ether (WETH).