The Celsius Network is a decentralized person-to-person loans platform built around the Celsius Wallet. This will be among the only online cryptocurrency wallets that let you use the coins in your wallet as collateral against a loan. In the future, the Celsius Wallet will also let you lend your crypto to earn interest.
The team behind Celsius Network feels that “banking is broken,” pointing out some specific issues with the industry. For instance, you sometimes need cash, even if you hold cryptocurrency. For everyday things, like paying off your credit cards or buying a car, many places still do not accept cryptocurrency, meaning that those with this type of asset need to sell their crypto. Celsius Network will eliminate this problem by making it easier to borrow cash, using crypto as collateral for low-interest loans. This way, users can maintain their crypto portfolio.
The team also points out that cryptocurrency sits in exchanges, wallets, or cold storage, where it isn’t possible to earn interest. Compared to the traditional banking model where cash in any type of account tends to earn at least minimal interest, this is a lose-lose situation for everyone involved. The Celsius Network resolves this issue by giving users the ability to lend their coins, so they can indeed earn interest, in many cases more than they would in a traditional bank.
Finally, the team at Celsius Network takes issue with the fact that financial institutions don’t fully understand cryptocurrency. Since they don’t have large vested interests, they are not interested in advancing it and will instead short it. The Celsius Network will take advantage of the 1 percent’s greed and desire to short the market by taking as much as 50 percent cash deposits and then charging interest if they hedge. This way, the community can get most of the earnings, and it provides more money for the community to borrow.
What Can You Do with the Celsius Wallet?
After depositing cryptocoins into your Celsius Wallet, you join the platform’s decentralized crowdsourced lending pool, which lets you earn interest daily. Celsius Network is creating a lending platform that will let the crypto community enjoy margin lending and the futures market without having to worry about the profits going mostly to traditional financial institutions. There is also the ability to get a loan in cash against your coins, meaning you won’t need to sell them.
How Does Crypto Collateral Work?
Using the crypto holdings as collateral, members can borrow USD. The goal of this functionality is making it possible for those who need cash to borrow from the platform easily without any requirement to sell their holdings. This functionality will appear as soon as the Celsius tokens have been issued.
How Does the Crypto Interest Work?
After some further development, the coins that members deposit into their private Celsius Wallet can be used for immediate shorting and borrowing on the market. Coins lent from a member’s wallet will get interest. This interest will come via CEL (Celsius tokens) and allow for as much as 9 percent annual interest for each transaction. There will be an incredible range of lending options, letting you choose from lengths spanning from a full year to just a day, and all will have competitive interest rates. This way, those who use the Celsius Wallet can earn interest on their crypto just like they would on cash sitting in a bank. However, the rate is even better.
What Are the Key Figures about the Crowdsale?
The CEL presale has already begun, and the crowdsale will begin very soon. The presale has a minimum investment of $10,000 USD or the equivalent in BTC and ETH, with the crowdsale at $500 USD or the equivalent. The hard cap is $50 million with a soft cap of $15 million. Overall, there are 650 million tokens, 325 million of which will be available during the presale. The initial price of the token is 1 CEL for $0.30 USD.
The presale will last until March 15. Until the Celsius Network raises $35 million, the rate will be $0.20 per 1 CEL with a 20 percent bonus. Following $35 million, the presale will continue at the same rate, but without the bonus. The crowdsale will begin on March 15, with the rate at $0.30 USD. To participate in the presale, you just need to make an account.
What Else Should You Know about the Celsius Degree Token?
The Celsius Network token, CEL, is an ERC20 Degree token that will be the Celsius Network’s backbone, delivering the value-driven borrowing and lending platform. At the moment of the token generation event, CEL will already have multiple utilities. Token holders will be members of the platform and the community. They will also be able to deposit their cryptocurrencies into the Celsius Wallet, apply for loans in dollars using those cryptocurrencies as collateral, and pay interest on those loans at a discounted rate.
The CEL token will have even more utilities in the future, including the ability to lend cryptocurrencies as a way to gain interest and receiving interest rewards on lent cryptocurrencies. Token holders will also be able to achieve seniority within the platform, improving the interest rate they gain.
What Does the Celsius Network Roadmap Look Like?
The concept for the Celsius Network began in March of 2017, with the team assembling in May and development beginning in September, which was also the time of the public announcement. The private presale began in Q4. This year, January saw the beta release for the Celsius mobile wallet, as well as the trader app and the beginning of the presale. The bonus tiers of 40, 35, and 30 percent were all oversubscribed.
Now in March, the presale will end and the public crowdsale will begin. In April, the token generation event will take place, with the enabling of borrowing dollars against crypto. In November, Celsius will launch the beta version of the margin-trading platform. 2019 will include scaling the community and expanding to the decentralized coin markets when this is safe.
The Celsius Network will provide holders of cryptocurrency with many benefits that were previously unavailable. Most notably, users will be able to earn interest on their crypto holdings, just like they would in a traditional bank account, but at a higher rate. They also can borrow fiat currency with their crypto as collateral. This should improve the general acceptance of cryptocurrency and provide numerous incentive for crypto holders to use the network.