What is Celsius Network?

The Celsius Network was founded in 2017 and headquartered in New Jersey in the United States.*

The Celsius Network was a blockchain-related financial platform which aims to rival a conventional banking system by allowing users to have interest bearing accounts, borrow and make payments using cryptocurrencies and fiat money.

Their motive was to make borrowing and lending a tool that was also available to the average joe that were not millionaires.

Users used to be able to deposit digital assets into the network to earn an interest just like a fixed-deposit or savings account. The interest could be up to 6.2% depending on the cryptocurrency deposited.

They could also use their cryptocurrencies as a collateral to take out a loan without having to go to traditional banks. The loan interests could range from 0% to 8.95% depending on the loan-to-value ratio.

The cash that was used to fund the loans comes from hedge funds looking for higher interest rates than banks.

Unfortunately, in July 2022, they filed for Chapter 11 bankruptcy as a result of “extreme market volatility” triggered by the crypto crash of May and June 2022 causing the crypto market to lose almost one trillion dollars.

Key Points

• Celcius Network is a financial platform that uses blockchain technology aimed to fix the “broken banking system”.

• Celsius Network went bankrupt in 2022 right after June's crypto crash.

• Celsius aims to decentralize the banking system.

What is the Celsius Token (CEL)?

According to the Celsius whitepaper, the token was established in 2018 in conjunction with the launch of the Celsius Crypto Wallet.

Users were able to use the CEL token as collateral to secure loans when borrowing from the Celsius Network and it was the backbone of the Celsius Network.

In their launch, it was said that the Celsius Token allowed holder to :

• Be a member of the Celsius community and platform

• Deposit cryptocurrencies in the Celsius Wallet

• Apply for loans on the Celsius Network

• Pay interest on the loans with a discount

• Lend the cryptocurrency for interest

• Achieve seniority status to earn more interest

• Get interest rewards on cryptocurrencies

However, since the platform is no longer functioning, these applications no longer apply to the CEL token; however it is still available for purchase on several exchanges.