Celsius Crypto Network: The Good, the Bad and the Ugly
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The crypto markets have experienced a huge decline, which means one of the industry’s most prominent bear markets to date – falling from a total market value of almost $ 3 trillion at the highest to just under $ 1 trillion. One of the crypto-product trends that seems to stop abruptly is the availability of interest-earning products.
This raises the question of whether more platforms will follow in its footsteps. With that in mind, here’s how Celsius behaves in the current landscape and whether it’s safe to use the platform.
What is the Celsius Crypto Platform?
Celsius is a crypto platform that started in 2017. It currently has more than 1.7 million users. It has also launched an app that is available on all devices. In addition, Celsius is the only crypto company with a customer center in case customers need to get in touch with a live agent.
Benefits
- More products
- Telephone support
- Supports a wide range of digital assets
Trade Bitcoin and other cryptocurrencies in 3 minutes.
- Join the crypto exchange that has had industry-leading security from day one.
- An easy, secure way to buy and sell cryptocurrencies
- Sign up for Gemini and get $ 7 in ETH
Cons
- Liquidity problems
- Lawsuits against the platform
How does Celsius work?
Celsius serves private clients as well as institutions and investment funds that want to be exposed to crypto. It offers four core products for its users:
Celsius has also said that they will launch a Visa credit card in the future.
What is Celsius Earn?
Celsius Earn is an interest-earning product that allows customers to get an annual percentage return of up to 14.05% on their cryptocurrencies. Both stack coins and cryptocurrencies are supported, along with Gold Tokens, which are linked to the price of gold.
What is the Celsius Exchange?
Celsius allows users to purchase cryptocurrencies through a connected bank account or credit card. Some of the popular tokens available for purchase include:
What are Celsius loans?
Celsius allows users to borrow either real US dollars or stack coins with an interest rate starting at 0.10%. The interest on the loan is paid monthly. In addition to USD, stablecoins that can be borrowed include:
- USD (USDC)
- Tether (USDT)
- Real USD (TUSD)
- Maker DAO v2 (MCDAI)
- Gemini USD (GUSD)
- Paxos (PAX)
What is Celsius Pay?
Celsius Pay is a method of sending and receiving crypto. However, this can only be done with contacts who also have the Celsius app. The process of sending is simple:
- Select the recipient.
- Select crypto and an amount.
- Add a message or just press “Send”.
Is Celsius a good investment?
The Celsius platform has a native token called Celsius. Its primary use is as a method for users to charge interest on their Earn product. Due to several ongoing problems at Celsius – including stopping withdrawals for customers – investing in the CEL token involves extreme risk right now.
Is it safe to invest with Celsius?
The funds are not FDIC-insured or SIPC-insured, and Celsius has no compensation plan should the company fail. Therefore, there is no investor protection.
As such, it may be safer to choose a platform other than Celsius until regulatory clarity has been established by public bodies.
Final Take
A popular phrase among crypto enthusiasts over the years has been: “Not your keys, not your coins.” This refers to the fact that it is not safe to hold cryptocurrencies on centralized exchanges.
The safest solution for protecting crypto ownership is cold storage, which means keeping crypto on a hardware device that only the owner can access. Now, more than ever, this is true for investors as the legitimacy of cryptocurrencies and platforms that have been managed irresponsibly is being questioned.
FAQ
Here are some questions people ask about Celsius’ krypton network.
- Is Celsius in trouble?
- Celsius issued a statement to its users on June 13, 2022, in response to the volatility of the crypto market. It informed customers that it would suspend all withdrawals and transactions between accounts – with immediate effect – by making changes to the Terms of Use. It is also a worrying sign that one of their closest partners, Voyager Digitalhas recently filed for bankruptcy.
- Is Celsius legitimate for crypto?
- Celsius is currently undergoing a mass reorganization in response to liquidity problems, and is facing lawsuits and criminal charges. All transactions and withdrawals are paused until further clarification is given. Therefore, consumers should approach the platform with caution.
- Who owns Celsius crypto?
- Celsius has three co-founders: Alex Mashinsky, S. Daniel Leon and Nuke Goldstein. It has also previously raised investment capital from Caisse de Depot et Placement du Quebec and WestCa.
The data is accurate as of July 12, 2022, and is subject to change.
Editorial Note: This content is not provided by Celsius. Any opinions, analyzes, reviews, assessments or recommendations expressed in this article are the sole responsibility of the author and have not been reviewed, endorsed or otherwise endorsed by Celsius.
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