Celsius (CEL): Is It A Good Investment?
![celsius-cel-deep-dive.jpg](https://files.bitscreener.com/blog/celsius-cel-deep-dive.jpg)
In the midst of rumors of the crypto lender Celsius' liquidity issues, CEL - the native token of the network has rocketed to a new height, spectacularly jumping by 600% from $0.33 to $2.56 as quickly as a flash.
However, the price plunged back to $0.56 within minutes after it announced to suspend all withdrawals on its lending platform due to extreme market conditions. Over the last few days, amid the huge slump of BTC, there have been multiple speculations about Celsius's liquidity problems.At the time of writing, CEL has witnessed a stable increment of over 50% in the last 24 hours, following the statement that it has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems.In detail, Celsius Network can be described as a fintech platform facilitating interest-bearing savings, borrowing, and payments with digital assets. Celsius can reward its users with 80% of its revenue while the other 20% can be utilized to expand the project.
Celsius desires to attract users by offering high deposit yields, while simultaneously maintaining quick, fee-less transactions. For those who aspire to take out a loan, Celsius provides an opportunity to acquire dollars without taking money out of cryptocurrency holdings.Celsius (Symbol: CEL), an ERC-20 standard token, is the native token of the Celsius platform. As the backbone of the Celsius Network, CEL serves a variety of internal purposes, including increasing user payouts, if utilized as the payment currency.
The core value of CEL tokens is providing additional rewards: the more CEL tokens users have in their wallets, the bigger the rewards. In detail, within the Celsius ecosystem, CEL is employed in the following use cases:The Celsius Network consists of hosted accounts on Celsius and a wide range of crypto exchanges with a view to minimizing the transfer of crypto-assets outside the platform.
In general, the Celsius system possesses four key objects:Moreover, the Celsius Network also operates based on two following major mechanisms:
1) EarningTo obtain extra income within the Celsius network, users can deposit crypto assets and receive rewards on a variety of valuable cryptocurrencies such as BTC, ETH, and USDC. Deposited funds are managed in a ‘Lending Stake Pool’ and then lent to external exchanges with the interest distributed to users. Celsius utilizes a modified Proof-of-Stake (PoS) to determine the distribution paid to lenders, counted with a function of deposited funds and the number of days entering Celsius’ consensus mechanism. 2) BorrowingHere are some types of participants who may desire to borrow through the Celsius platform.The platform offers financial services on the kind of terms that traditional financial institutions no longer offer, including:
Celsius also functions as a wallet via its CelPay feature, hosting its own CEL token which users can utilize to increase payout value among other things.
Celsius was born by Alex Mashinsky and Daniel Leon in 2017.
Currently, Celsius has a core team of numerous technical developers and advisors in various fields.
As a platform built with and for the community, Celsius aims to establish a new paradigm where its whole network, not the traditional banks, benefits.
On June 14th, CEL skyrocketed 600% to the amazement of investors and currently remains a stable gain by 128% in the last 24h, proving itself a viable investment in the long term.Explore all the trending topics and hottest news in the crypto market with our Blogchain.Meanwhile, practice trading, play virtual money, and earn real tokens with CryptoSim - Virtual Trading Game.