Celsius (CEl) Crash: All You Need to Know About the Lending Token
The bear market is here, and cryptocurrency prices are falling. LUNA and USDT have contributed to the unrest in the market after a recent crash that cost millions in liquidation. While CEL is the newest token to join this downward spiral trend after its token price plummeted by 50%.
Celsius Network is a blockchain-based lending platform that allows users to earn interest on their cryptocurrency deposits and access low-interest loans. Over the past few years, CEL has become one of the most popular coins in the market, with over $200 million in its circulating supply. So, what is the Celsius Network? And why did it crash? Let’s learn more about the blockchain-based bank.
What is Celsius Network (CEL)?
Celsius Network is a blockchain-based lending platform that allows users to earn interest on their crypto deposits. It also provides credit services, peer-to-peer loans, and other financial services.
The company was launched in 2017 by its creators, Alex Mashinsky and Daniel Leon. Mashinsky has a long-running history in the internet development sphere, having worked on the Voice Over Internet Protocol (VOIP) in the 1990s and other technologies.
Celsius now has a large team of core employees, technical developers, and advisors with experience in various spheres. Its network supports over 40 digital assets, including Bitcoin, Litecoin, Ethereum, Ripple, etc., making it one of the most versatile platforms for lending cryptocurrencies.
How does Celsius work?
Celsius Network is a lending platform that allows users to borrow crypto to add to their holdings. They offer one of the most competitive rates in the market, starting at 0.1% APR on crypto-to-fiat loans depending on the crypto asset you choose to borrow. If you have a high amount invested in crypto assets, this rate may not seem so bad given how much your coin holdings can grow over time; it’s all about perspective!
The Celsius Network utilizes the Ethereum blockchain, which means that you don’t have to worry about fraudulent activities with your money because this technology creates an immutable record of all transactions, making it difficult for anyone to manipulate them after they are recorded.
The platform offers sustainable returns on investment, providing a secure and convenient way for users to access crypto markets through its peer-to-peer (P2P) lending system. The platform’s native token is CEL, which can be purchased using fiat currencies such as USD and EUR or with other cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Ripple.
Celsius as a Decentralized Blockchain Bank
Celsius Network offers its users the ability to lend, earn and swap cryptocurrencies at low rates. In terms of borrowing, it is like a peer-to-peer lending platform, except it uses cryptocurrency as collateral instead of fiat money or property.
By allowing people to borrow cryptocurrencies at a fraction of their initial price and return them when their value goes up, Celsius Network has created an opportunity for anyone to profit from the volatility in cryptocurrency by performing an easy transaction on their mobile app.
Celsius an Alternative to Traditional Banks.
If you’re looking for an alternative to traditional banks, Celsius may be the answer. By allowing users to earn up to 17% APY on their cryptocurrency deposits, Celsius has become a great alternative to traditional banks.
The interest rates are one of the main reasons why people choose Celsius over other cryptocurrency lending platforms such as BlockFi and Nexo. They also offer higher interest rates than most crypto lending services (17% APY for Bitcoin customers), making it easy for users to profit by investing in digital assets.
The best part about Celsius is that its services are available worldwide and don’t require any complicated registration process as many other crypto-based platforms do. This means anyone can easily access it regardless of their knowledge about investing in digital assets or cryptocurrencies in general!
CEL’s Growth in Popularity
Over the past few years, CEL has become one of the most popular coins in the market, with over $200 million in its circulating supply — compared to other cryptocurrencies, it’s not that well-known, but it’s worth looking into.
The coin is ranked 113th and has a market cap of $224 million, with a 24-hour volume of $1.2 million, making it an interesting choice for investors and traders alike.
Why did CEL Crash?
Experts attribute the CEL crash to the network announcing they are increasing the coin’s supply. This caused a lot of criticism from concerned investors — resulting in people dumping the token. Another reason behind its crash could be a recent report which suggested that the coin was facing liquidity issues.
A liquidity issue is when there are not enough buyers or sellers in the market, causing the price to increase or decrease. This can be caused by many things, including a lack of interest from investors who want to buy or sell Celsius cryptocurrency. Another reason could be that there aren’t enough buyers or sellers at any given time for investment purposes and for purchasing goods with Celsius coins.
To avoid these issues as an investor, you need to understand how they work and how you can use them to your advantage when investing in Celsius tokens. You’ll want to ensure that plenty of people are interested in buying and selling your cryptocurrency; without this kind of demand for its coins, their value will decrease significantly over time, making it difficult (or impossible) to grow.
How does CEL Plan to Recover from the Crash?
The Celsius team has released a recovery plan to help the community recover from its recent crash. The team is working on the recovery plan with a few exchanges.
The team has also announced that they are working on stabilizing the network and creating a better security system for coins. Since the announcement, CEL has grown by 48%, recovering a little from
Conclusion
CEL is an excellent altcoin with a practical use case. Its network is very reliable, and CEL is one of the most popular coins in the market, with over $200 million in its circulating supply. Investors looking to earn crypto and HODL can benefit from staking crypto with Celsius because of their high-interest rate. There are many ways for investors to earn crypto, including staking, farming, and mining. Our browser-based miner is an automated way of earning cryptocurrencies to increase your holdings.
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