What Is Celsius Crypto Network?

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Crypto markets have experienced an immense downturn, signifying one of the industry’s most prominent bear markets to date — falling from a total market capitalization of almost $3 trillion at its all-time high to a little under $1 trillion. One of the crypto product trends seemingly coming to an abrupt halt 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 stacks up in the current landscape and whether using the platform is safe.

What Is the Celsius Crypto Platform?

Celsius is a crypto platform that began in 2017. It currently has more than 1.7 million users. It has also launched an app that is available across all devices. Additionally, Celsius is the only crypto company with a call center in the event that customers need to get in touch with a live agent.

Pros

  • Multiple products
  • Phone support
  • Supports a wide variety of digital assets

Cons

  • Liquidity issues 
  • Lawsuits against the platform

How Does Celsius Work?

Celsius serves retail customers as well as institutions and investment funds that want to gain exposure to crypto. It offers four core products for its users:

  • Earn
  • Exchange
  • Borrow
  • Pay
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Celsius has also said it will be launching 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 yield of up to 14.05% on their crypto assets. Both stablecoins and cryptocurrencies are supported, along with Gold Tokens, which are tied to the price of gold.

What Is the Celsius Exchange?

Celsius lets users buy cryptocurrencies through a connected bank account or credit card. Some of the popular tokens available for purchase include:

What Is Celsius Borrow?

Celsius allows its users to borrow either real U.S. dollars or stablecoins with interest starting at 0.10%. The interest on loans is payable monthly. In addition to USD, the stablecoins that can be borrowed include:

  • USD Coin (USDC)
  • Tether (USDT)
  • True 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, it can only be done with contacts that also have the Celsius app. The process for sending is simple:

  1. Choose the recipient.
  2. Select the crypto and an amount.
  3. Add a message, or just tap “Send.”
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Is Celsius a Good Investment?

The Celsius platform has a native token called Celsius. Its primary use is as a method for users to claim interest from its Earn product. Due to several ongoing issues at Celsius — including halting withdrawals for customers — investing in CEL tokens carries extreme risk right now.

Is Investing with Celsius Safe?

Funds are not FDIC-insured or SIPC-insured, and Celsius has no compensation plan should the company fail. Hence, there is no investor protection.

As such, choosing a platform other than Celsius may be safer until regulatory clarity is established by government 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 holding crypto assets on centralized exchanges is not safe.

Arguably the safest solution to protect crypto ownership is cold storage, meaning holding crypto on a hardware device that only the owner can access. Now more than ever, this is ringing true to investors as the legitimacy of crypto and platforms that have been managed irresponsibly are being questioned.

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FAQ

Here are some questions people ask about the Celsius crypto network.
  • Is Celsius in trouble?
    • Celsius issued a statement to its users on June 13, 2022, in response to the crypto market volatility. It informed customers that it would be pausing all withdrawals and transactions between accounts — effective immediately — by making changes to its Terms of Use. It’s also a worrying sign that one of its closest partners, Voyager Digital, has recently filed for bankruptcy.
  • Is Celsius legitimate for crypto?
    • Celsius is currently undergoing a mass reorganization in response to liquidity issues as well as facing lawsuits and criminal allegations. All transactions and withdrawals have been paused until further clarification is provided. Hence, consumers should approach its platform with caution.
  • Who owns Celsius crypto?
    • Celsius has three co-founders: Alex Mashinsky, S. Daniel Leon and Nuke Goldstein. It has also completed raises for investment capital from Caisse de Depot et Placement du Quebec and WestCa in the past.

Data is accurate as of July 12, 2022, and is subject to change.

Editorial Note: This content is not provided by Celsius. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Celsius.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

David is a qualified financial advisor in the Republic of Ireland. He has a bachelor's degree in business and entrepreneurship, as well as over five years of investing experience.

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