Find out about Celsius (CEL), it’s easy!

What is Celsius? 

Celsius is a centralised fintech platform. Its main product is the mobile app, which offers banking and financial services to registered users. Celsius does not offer buying and selling services but mainly cryptocurrency-based loans. How does Celsius work? The platform lends the funds deposited by users to other institutions, crypto exchanges or DeFi protocols in order to generate profit and share it with cryptocurrency owners. The whole ecosystem aims to surpass traditional banking services by offering more advantageous conditions and rates. However, in June 2022, it announced its decision to suspend withdrawals due to a liquidity crisis that would have rendered it insolvent, i.e. unable to repay funds to users.  

Why follow the Celsius project? 

The network’s token is CEL, which provides for lower fees, cheaper loans and higher APYs. Although centralised, Celsius Network pursues a mission to benefit the community, always expecting to return 80% of its earnings in the form of rewards and interest for users. For a long time, this was supported by the over-collateralisation of loans, although it had to suspend operations in June 2022 to secure future withdrawals. The consensus mechanism of this blockchain is a particular type of Proof-of-Stake, while the reference standard of the CEL token is Ethereum’s ERC-20. 

How it began 

Celsius was created in 2018 by Alex Mashinsky, an important figure in the world of the web. He designed the VOIP protocol for online telephony, which is used by the major telephone apps. His co-developers on the Celsius project were Nuke Goldstein and Daniel Leon. The former is a blockchain programmer with a background in P2P computing and digital entertainment. The latter is a start-up incubation specialist. The company currently has four main offices: two in the United States, one in Vilnius, Lithuania, and one in London, England.