Altcoins: Celsius Network (CEL), What Is It ? - A Deeper Look Into The Celsius Network Platform
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Summary:
- What is the Celsius Network Platform and how does it work?
- Advantages of the Celsius Network exchange.
- Celsius Network’s past, present and future price positions.
Celsius Network Platform
The Celsius platform is an all-in-one banking and financial services platform for cryptocurrency users, it was launched in 2018, it offers users rewards for depositing cryptocurrencies along with services such as loans and wallet-style payments. Platform users receive interest payments on their holdings and regular payouts. CEL, Celsius’ native token performs a mixture of internal functions including boosting their user payouts if CEL is used as the payment currency.
The Celsius Network platform aims at financial freedom without a price tag, where ethical behaviour is the baseline thing and the peoples interest is the main priority. The Celsius Network Platform encourages a financial place where everyone can succeed financially. The platform integrates a bunch of services that have been abandoned by big banks, for example, zero-fees, fair yield and extremely fast transactions. The main goal of Celsius network is to disrupt the financial industry, one user at a time and to introduce financial freedom through crypto.
During the first quarter of 2018, Celsius had their first successful initial coin offering for CEL. There is a maximum supply of more than 695 million CEL, almost 239 million of those are currently in circulation. The current CEL market capitalization is more than $240 million.
Celsius plans to outperform the current financial services industry by offering its users benefits that banks no longer offer, such as higher returns on deposits and savings, easier and fairer (easily obtainable) loan requirements and rewards that are automated algorithmically for each user. The platform waives penalties and bank-style fees. The Celsius platform also has a Celpay feature which functions as a wallet for users and hosts its own CEL token, which users are able to leverage to increase, amongst other things, payout value.
Celsius is also a for-profit company, they take out a cut of profit margins on interest payments, still returning 80% to users themselves. The company also lends to institutional investors, such as hedge funds. Payments are ensured because loans are backed by assets, any borrower must supply more than 100% of what they borrow in the destination currency.
Celsius uses a proof-of-stake (PoS) consensus algorithm for its CEL token.
Advantages of the Celsius platform
- Robust DeFi services.
- Perks involved when users use its native CEL token.
- Celsius Network employs an easy-to-use funds transfer system called CelPay.
- Celsius Network ensures they have $30 million in insurance for assets that are stored in the Celsius wallet app.
- Residents from around 150 countries are able to trade on the Celsius network platform via desktop, Android or IOS apps.
- There are no fees charged for transfers, minimum balances or loan origination.
Past, present and future prices of Celsius Network (CEL)
After the launch of the Celsius network platform, the price of CEL took around 1.5 years to rise after its launch in 2018, the first spike in price that occurred during the first quarter of 2021, and saw the price reach almost $6, and was followed by a small decline. After its first peak in 2021 the price fell and then spiked again in the same year reaching its all time high of $7.76 in June, and continued to experience volatility until the third quarter of 2021. Thereafter the price of CEL has remained on a downward trend, this is due to the volatility of the current economic conditions. The value of CEL has been falling due to the current market conditions and risk-off sentiment.
Over the past few months, the markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, CEL does fall under this category.
According to some analysts the future price of Celsius network (CEL) could reach up to $4.1 by 2024 and could see a price of more than $6 by 2026. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
CEL Price Chart
Sources: Finance.yahoo.com, coinmarketcap.com, celsius.network, fool.com, cryptonewsz.com
