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What is Celsius (CEL)?

Celsius basic info

Name:Celsius
Ticker:
Introduction:

What Is Celsius Network?

Celsius Network is a regulated cryptocurrency lending platform, headquartered in the United States, that has made significant waves in the digital asset space. Founded in 2017 by Alex Mashinsky, Daniel Leon, and Nuke Goldstein, the network offers a unique proposition for crypto users: the ability to deposit various digital assets to earn high returns or to secure loans. In 2018, Celsius Network conducted a highly successful Initial Coin Offering (ICO) for its native token, CEL, raising an impressive $50 million. This marked the beginning of a period of exponential growth, with the company managing approximately $12 billion in assets and establishing itself as a prominent player in the market.

However, the journey was not without its challenges. The firm faced multiple controversies and eventually filed for bankruptcy in 2022, citing poor asset deployment decisions. Currently, Celsius Network is undergoing restructuring as part of the bankruptcy process.

Resources

Official Website: https://celsius.network/

How Does Celsius Network Work?

Celsius Network operates in a way that mirrors traditional banking systems, but with a focus on cryptocurrency. Users can deposit their crypto assets into Celsius to earn interest, similar to a savings account in a conventional bank. This feature has made it an attractive option for individuals looking to generate passive income from their cryptocurrency holdings. Additionally, Celsius extends the facility to borrow money against these deposits. This service is particularly beneficial for those who need liquidity but do not wish to sell their crypto assets, thereby avoiding potential capital gains taxes and maintaining their investment in the market.

The platform's operations are significantly enhanced by its native token, CEL. CEL plays a central role in the Celsius ecosystem, being used for various purposes including taking out loans, earning rewards, and making payments. Furthermore, Celsius has implemented a loyalty program that is directly tied to the amount of CEL a user holds. This program offers multiple tiers, each providing additional benefits such as bonus rewards and reduced interest rates on loans. This tiered system incentivizes users to hold and use CEL, thereby increasing its utility and value within the platform.

What Is CEL Token?

CEL is the native token of the Celsius Network, serving multiple functions within its ecosystem. CEL is used for loan acquisition, reward distribution, and payments. The token's utility is further enhanced by the Celsius loyalty program, where the user's status and corresponding benefits are determined by the proportion of CEL in their portfolio. This system encourages users to invest in and hold CEL, creating a robust internal economy and fostering a sense of community among users. The token's role in the platform's operations and its integration into the loyalty program make it a vital component of the Celsius Network, contributing significantly to its overall functionality and appeal.

Celsius Network's Downfall: From Crypto Titan to Bankruptcy and Legal Battles

In June 2022, the cryptocurrency world was shaken by the dramatic collapse of Celsius Network, a once-thriving crypto lending platform. Founded in 2017, Celsius Network had grown to manage assets worth $11.7 billion, boasting a user base of 1.7 million. However, the company faced a severe crisis when it abruptly froze all customer accounts on June 13, 2022, citing "extreme market conditions." This move not only sent shockwaves through the price of Bitcoin and other cryptocurrencies but also revealed the precarious financial state of Celsius. Court filings later showed that the company was in a dire situation, with liabilities of $5.5 billion against assets of just $4.3 billion, leaving a staggering deficit of $1.2 billion.

The downfall of Celsius Network can be attributed to a confluence of risky investments and market conditions. The platform's heavy investment in the LUNA's Anchor protocol and its high-risk strategies involving Wrapped BTC (WBTC) and DAI, as well as ETH and stETH, played a significant role in its collapse. These decisions, coupled with the broader crypto market downturn, led to an acute liquidity crisis for Celsius. To prevent a total drain of their holdings, the company halted all withdrawals, swaps, and transfers, effectively locking users out of their assets. This decision marked a turning point for Celsius, leading to the filing of Chapter 11 bankruptcy on July 14, 2022. The company's CEO, Alex Mashinsky, resigned in September 2022, amidst growing scrutiny and legal challenges.

The aftermath of Celsius Network's collapse has been marked by legal battles and regulatory actions. Alex Mashinsky, the former CEO, was arrested and faces criminal and civil charges related to his role in the company's downfall. The U.S. Justice Department, along with other federal regulators like the CFTC, FTC, and SEC, have been building cases against Celsius for various regulatory violations. The New York attorney general filed a lawsuit against Mashinsky for allegedly making false and misleading statements, leading to significant investor losses. As of now, Mashinsky has pleaded not guilty to all charges, and Celsius continues with its bankruptcy proceedings, leaving many investors uncertain about the fate of their assets.

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Current price:
All-time high:$8.02
All-time low:$0.02235

CEL supply and tokenomics

Circulating supply:37,720,110 CEL
Total supply:37,720,111 CEL
Max supply:0 CEL
Market cap:$9.35M
Fully diluted market cap:$9.35M
Tokenomics:

Uniqueness

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.

Token utility

Built on the belief that financial services should only do what is in the best interests of the community, Celsius is a modern platform where membership provides access to curated financial services that are not available through traditional financial institutions. Crypto holders can earn rewards by transferring their coins to their Celsius Wallet and can borrow USD or stablecoins against their crypto collateral at interest rates as low as 1% APR.

Links

Buy Celsius for $1Buy CEL now

What is the development prospect and future value of CEL?

The market value of CEL currently stands at $9.35M, and its market ranking is #1074. The value of CEL is not widely recognized by the market. When the bull market comes, the market value of CEL may have great growth potential.

As a new type of currency with innovative technology and unique use cases, CEL has broad market potential and significant room for development. The distinctiveness and appeal of CEL may attract the interest of specific groups, thereby driving up its market value.

What will the price of CEL be in 2025?
Based on CEL's historical price performance prediction model, the price of CEL is projected to reach $0.3460 in 2025.
What will the price of CEL be in 2030?
In 2030, the CEL price is expected to change by +10.00%. By the end of 2030, the CEL price is projected to reach $0.3570, with a cumulative ROI of +29.64%.
Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of CEL and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

Is CEL worth investing or holding? How to buy CEL from a crypto exchange?

If you want to buy CEL, the following information may be helpful for your investment decisions:
In the last 7 days, the price of CEL has fallen by -5.73%, leading to negative returns for most CEL investors. The market is currently pessimistic about the price trend of CEL.
It is important to note that the current price of CEL has retreated by -96.91% from its all-time high. This coin is currently considered high-risk, and while its price may rebound in the future, there is significant uncertainty.
Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.
To decide whether CEL is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.
Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in CEL or any cryptocurrency comes with certain risks and uncertainties.
Regardless of your outlook on the development prospects and future trends of CEL, if you want to buy or sell CEL, you can consider Bitget for your trading needs. The best place to buy CEL is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.
Investing in Celsius has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Celsius. Here's a step-by-step guide on how to buy Celsius on Bitget.

How to get Celsius through other methods?

Using cash to buy Celsius is not the only way to obtain Celsius. If you have the time to spare, you can get Celsius for free.
Learn how to earn Celsius for free through the Learn2Earn promotion.
Earn free Celsius by inviting friends to join Bitget's Assist2Earn promotion.
Receive free Celsius airdrops by joining ongoing challenges and promotions.
All crypto airdrops and rewards can be converted to Celsius through Bitget Convert, Bitget Swap, or spot trading.

What is Celsius used for and how to use Celsius?

The use case of Celsius may expand as the crypto market and the project itself develop. Currently, you can use CEL to achieve the following goals:
Arbitrage by trading CEL: Since CEL is a frequently traded cryptocurrency, the price of CEL is always fluctuating. Earn more CEL by buying low and selling high on the exchange. Bitget spot market provides a variety of CEL trading pairs to fully meet your needs.
Earn by staking CEL: You can also generate income through financial management methods such as staking CEL or lending CEL. Bitget Earn offers a variety of financial products designed to help you earn more income from your CEL.
Send or pay CEL: If you want to give CEL to your friends, a charity, or a fundraiser, or you want to pay someone with CEL, you can quickly and easily send CEL to the recipient through their payment address.
You can also go to the official website of the Celsius project to learn more about the use cases of CEL. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

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