What is Celsius (CEL) coin?

2017 marked the debut of Celsius Network, a pioneer in the realm of cryptocurrency lending and borrowing.

Nov 28, 2024 at 05:35 pm

Understanding Celsius (CEL) Coin: A Comprehensive Guide

Evolution of the Celsius Network

Celsius Network emerged in 2017 as a pioneer in the realm of cryptocurrency lending and borrowing. The platform quickly gained traction, attracting users eager to earn interest on their crypto holdings while accessing loans without credit checks.

Step 1: Pioneering Crypto Lending and Borrowing

Celsius introduced a novel concept that allowed users to deposit their crypto assets and earn interest. The platform also offered flexible loan options, enabling users to borrow against their crypto collateral without undergoing traditional credit assessments.

Step 2: Celsius (CEL) Coin: The Native Token

In 2018, Celsius launched its native utility token, Celsius (CEL). CEL serves multiple purposes within the Celsius ecosystem:

• Reduced Loan Interest: CEL holders receive discounted interest rates on crypto loans.
• Reward Boost: Users who hold CEL earn bonus rewards on their account balances.
• Priority Access: CEL holders are prioritized for new products and features.
• Governance Participation: CEL grants holders voting rights on platform decisions.

Celsius Network's Features and Services

Celsius Network offers a suite of financial services that cater to both retail and institutional investors.

Step 1: High Yield Earn Accounts

Users can deposit over 50 supported cryptocurrencies into Earn Accounts and start earning interest daily. Celsius leverages its lending and borrowing activities to generate yield, which is then distributed to Earn Account holders.

Step 2: Low-Interest Crypto Loans

Celsius provides crypto-backed loans with competitive interest rates and flexible repayment options. Users can borrow up to 75% of the value of their pledged collateral.

Step 3: Referral Program

The Celsius referral program rewards both the referrer and the referred party with bonuses when new users sign up and deposit funds.

Step 4: Crypto Rewards

CEL holders are eligible for weekly rewards paid in CEL based on their account activity and CEL balance.

Security and Regulation

Celsius Network prioritizes the security of its users' funds and adheres to regulatory compliance frameworks.

Step 1: Custody and Insurance

Celsius partners with leading custodians to safeguard user assets. Additionally, the platform maintains insurance coverage to protect against theft and loss.

Step 2: KYC and AML

Celsius implements Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols to ensure compliance with regulatory obligations.

CEL Coin Tokenomics

CEL is an ERC-20 token with a total supply capped at 695,658,157 CEL. The token distribution is as follows:

Step 1: Token Distribution

• 50%: Ecosystem (lending, mining rewards, buybacks)
• 35%: Team and Contributors (locked for 5 years)
• 15%: Founders and Advisors (locked for 5 years)

Step 2: Circulating Supply

The circulating supply of CEL is approximately 305 million tokens. The remaining tokens are locked in vesting contracts and will be released gradually over time.

Step 3: Token Burn Mechanism

CEL employs a monthly token burn mechanism, which reduces the total supply and aims to increase the value of the remaining CEL tokens.

Use Cases for CEL Coin

CEL coin serves several use cases within the Celsius ecosystem:

Step 1: Discounted Borrowing

CEL holders can reduce their crypto loan interest rates by using CEL as collateral.

Step 2: Earning Referral Bonuses

Referrers who hold CEL receive higher bonuses when new users sign up through their referral link.

Step 3: Enhanced Rewards

CEL holders earn increased rewards on their Earn Account balances and weekly CEL rewards.

Step 4: Governance and Platform Development

CEL holders have voting rights on proposals that impact the Celsius platform's development and operations.

Conclusion

Celsius (CEL) coin is a versatile digital asset that plays a pivotal role within the Celsius Network's financial services ecosystem. CEL offers financial advantages, governance rights, and contributes to the stability of the platform. As the Celsius Network continues to evolve, CEL is expected to remain an integral part of its offerings.