About the company
Alex Mashinski, the creator of Celsius Network Limited, founded the company in March 2018 in London, UK. Celsius has developed fast since then, and CEL presently has an estimated market valuation of $1.41 billion, with community assets exceeding $10 billion as of March 2021.
The CEL token is an essential component of the Celsius system since it is utilized for a four-tier loyalty program that delivers perks such as income bonuses and loan interest rate savings. The four tiers are established by the percentage of a user’s portfolio that consists of CEL (bronze, silver, gold, and platinum).
The bronze level (less than 5% CEL) offers no benefits to users, the silver level (5–10% CEL) offers a 10% income bonus and a 10% discount on loan interest rates, the gold level (10–15% CEL) offers a 20% bonus and a 10% discount, and the platinum level (over 15% CEL) offers a 35% bonus and a 30% special offer.
To access any of the Celsius system’s services, you must first acquire bitcoin. You may either move your existing cryptocurrency to the coin’s blockchain or acquire the cryptocurrency straight. It’s a rather easy process in which users go to the in-app internal wallet, choose a payment method (credit card or bank transfer), the cryptocurrency to buy, and the fiat money to utilize for the transaction. The cryptocurrency is credited to the user’s account after inputting the appropriate amount and verifying the payment.
For banks, crypto lending platforms, which are only focused on cryptocurrency tokens, are a new option for borrowing and lending. This website links borrowers with cryptocurrency owners who wish to lend part of their coins in return for interest payments.
When a Celsius user uses the lending or “earn” function, he or she can stake a stablecoin, gold token, or cryptocurrency, which Celsius then lends to retail or institutional borrowers. Once the tokens are loaned, the lender receives weekly payments in kind or in CEL from the loan revenue. Staking incentives fluctuate, so keep an eye on the Celsius Network website for the most up-to-date information.
The company offers the option of borrowing stablecoins or US dollars using cryptocurrencies as collateral to both retail and institutional clients. The smallest amount a user may request in stablecoins is $500, and the minimum amount in USD is $15,000, making it extremely accessible and inexpensive.
The firm also informs the user of a margin call, at which point the user must deposit more collateral, as well as the liquidation price at which the collateral is liquidated to satisfy the margin for the specific coin being utilized.
This is Celsius’ own payment mechanism, which has made transferring cryptocurrency between users easier by eliminating the need for lengthy crypto addresses. It works by a person creating a network of other users, such as friends and relatives, to whom they may swiftly and simply transmit whatever cryptocurrency they choose. CelPay can be used to transfer any cryptocurrency on Celsius, but using CEL earns you a 2% cashback bonus.
Celsius has entered the burgeoning DeFi market by launching its own decentralized exchange (DEX) based on an automated producer model (AMM) framework. The DEX differs from typical exchanges in that, rather than linking buyers and sellers to execute transactions via an order book, the user trades cryptocurrency via smart contracts and “liquidity pools.” These pools are managed by AMM-created algorithms that match buy orders with available cryptocurrency. CelSwap was developed to allow users to swap between cryptocurrencies while benefiting from the greater interest rate of a certain token.
Celsius provides tailored services to rich and institutional clients, including support and software. Celsius Pro offers treasury management, which includes a specialized staff of accountants that track loans and risks in real-time. Customers can earn incentives by lending to Celsius without requiring collateral.
Celsius takes pride in its low-cost services and does not charge its clients any trading fees. This is achievable because the broker earns a profit from lending operations and does not charge a fee for loan origination, deposit, or withdrawal. The only fees charged on this platform are for third-party services like Coinify, Simplex, and Wyre, which are used to buy cryptocurrencies and create digital wallets.
Promotions and special offers
There are several promo codes available, and users may select the incentive amount, currency, and minimum transfer amount that work best for them. Most Celsius promos are merely a registration incentive for new customers, but there are a few exceptions, like the ADA40 campaign, which awards $40 in ADA currency for a minimum transfer of $400. See the Celsius website for a comprehensive list of wallet promo codes and their conditions.
Celsius is ISO 27001 certified, which signifies that the organization has made sufficient investments in staff, infrastructure, and technology to ensure user safety. This is clear given that there have been no reports of hacking or security breaches in the company’s three years of operation.
Account security is high since signing up and logging into a profile needs identity verification, two-factor authentication (2FA), and a QR code authentication app. The information requested varies depending on where you are. Because of SEC know-your-customer (KYC) standards, US consumers, for example, are obliged to supply their social security numbers and ID.
Celsius is regulated and certified by the US FinCEN and SEC, so consumers can be certain that they are using a safe and secure platform. It was formerly registered with the Financial Conduct Authority (FCA) on a temporary basis, but the lack of confidence in the UK crypto market has resulted in its deregistration. This means that new UK client registrations are no longer being accepted, but existing users may still lend and borrow cryptocurrency on the platform.
Specific services offered to users in the United States may differ by state. For example, Celsius, with a license from the California Department of Financial Protection and Innovation, may offer a loan in which California residents can borrow stablecoins at 0% interest per year.