Review on Celsius by Fabrizio Zampieri
Celsius Network, launched in 2018, is a borrowing and lending platform that…
Celsius Network, launched in 2018, is a borrowing and lending platform that will allow users to earn up to 7% interest on their cryptocurrency while taking loans at 9% interest, using their crypto as collateral. The platform uses Blockchain to enable peer-to-peer lending, and the credit limit and the interest rate is based on what is the best interest on the entire membership, not just the lenders.
Celsius interest rates are updated weekly based on the demand in the market. Interest are paid in BTC on users BTC account, ETH on ETH account, and so on. Eventually, users will be able to also choose to earn interests in the Celsius token, CEL, at even better rates. Interest is paid every Monday. For users protection, there is a daily withdrawal limit of $20,000. But it is possible to withdraw more than that, simply email customer service and verifying own identity.
Coins are held in BitGo (custodian) and lent out to hedge funds/exchanges/institutional traders. Any time users coins are lent out, up to 150% of the value is provided in another collateral (typically USD).
Celsius company is composed of a team of experienced entrepreneurs and industry pioneers who are dedicated to bring power back to the people.
Celsius (CEL) is an ERC20 token based on the Ethereum blockchain. Celsius has a current supply of 700 million CEL (there isn't any information about CEL in circulation).
There are many planned utilities for the CEL token: membership, priority in line for loans, better dollar loan rates, better-earning rates, better coin loan rates, CEL for CelPay, and premium support.
CEL is tradable on Switcheo Network and IDEX exchanges.
Pros
- - Interest rates earned on Celsius platform start at 3% and go up to 7.1% (team is trying to keeping interest rates above 3% for all the assets supported in the app). - No minimum or maximum deposit. - Users will be able to pay off their loan at a 20% discount by using CEL tokens. - Celsius is finalizing an agreement with a reputable external auditor (it is necessary to have an auditor, in my opinion). - Celsius seems to be the only company in crypto sector to have more hard working women than men.
Cons
- - Celsius Network currently does not have an insurance policy (even if Company will continue to make choices in the best interest of the community). - Celsius ROI -58,51% (the approximate return on investment if purchased at the time of launch). - Great potential even if Celsius is a young project, in early stages.
