Celsius (CEL)

The History of Celsius

Check out the history of Celsius in details:

Origins of Celsius Network

Celsius Network was developed in 2017 by Alex Mashinsky and Daniel Leon, both of whom brought extensive expertise to the project. Alex Mashinsky, a prominent innovator in internet development, played a pivotal role in creating Voice Over Internet Protocol (VOIP) during the 1990s. With a career spanning decades, Mashinsky has founded seven startups and holds over 35 patents, many of which have contributed to advancements in telecommunications and technology. His vision for Celsius was rooted in creating a platform that would provide financial freedom and better returns for cryptocurrency users, challenging the traditional banking system. Daniel Leon, co-founder and Chief Operating Officer, complemented this vision with his entrepreneurial experience in scaling early-stage ventures. Previously, Leon served as CEO of Atlis Labs, a social discovery app leveraging real-time user recommendations. Together, the duo set out to design a cryptocurrency platform that would democratize financial services and empower users globally.

Launch and Development

Celsius officially launched in June 2018, introducing a comprehensive suite of financial services tailored to cryptocurrency users. At its core, the platform offered interest-bearing accounts, allowing users to earn pivotal returns on their crypto holdings. Celsius also introduced lending services, enabling users to borrow against their cryptocurrency at competitive rates without needing to liquidate their assets. These offerings were complemented by wallet-style payment features and the CEL token, which provided additional benefits such as higher interest rates and discounted loan fees. By integrating these functionalities, Celsius set itself apart from competitors by prioritizing user benefits and transparency.

Founding Team and Expansion

The founding team quickly expanded to include experts in blockchain technology, finance, and cybersecurity, building a robust foundation for Celsius. With a commitment to transparency and user-centric innovation, the company grew its operations to include institutional lending and partnerships with major cryptocurrency exchanges. The CEL token became central to the platform, incentivizing user engagement and facilitating internal transactions.

Key Features and Offerings

Celsius provides an alternative to traditional financial services by focusing on higher returns, fairer loan conditions, and user-friendly features. Unlike conventional banks, Celsius does not impose penalties or hidden fees. Instead, it rewards users with up to 80% of its profit margins, which are generated from lending and interest payments. The platform’s CelPay feature allows users to send and receive cryptocurrency seamlessly, while the CEL token boosts payout values and offers discounts on loans. Celsius has also earned trust by requiring borrowers to over-collateralize loans, ensuring financial stability and reducing risk.

Tokenomics of CEL

The native CEL token plays a vital role in the Celsius ecosystem, providing users with additional incentives and benefits. As an ERC-20 token, CEL operates on the Ethereum blockchain and supports multiple functionalities, including increasing interest payouts and reducing borrowing costs. The total supply of CEL is capped at 695,658,161 tokens, with 76% currently in circulation. During its initial coin offering (ICO) in May 2018, half of the tokens were allocated to presale and crowdsale participants, while the remainder was distributed to the treasury, team, and partners. CEL remains tradable on major exchanges, ensuring liquidity and accessibility for users worldwide.

Security and Risk Mitigation

Celsius employs a modified proof-of-stake algorithm to secure its network and ensure token functionality. To further safeguard user funds, the platform enforces strict measures, including two-factor authentication and wallet protection. Loans are asset-backed, requiring borrowers to collateralize more than 100% of the loan amount, which minimizes default risk. While the platform offers robust security, users are advised to adopt best practices, such as enabling additional security features, to protect their accounts against external threats like SIM-swapping attacks.

Accessibility and Adoption

Celsius has positioned itself as a widely accessible platform, with CEL being traded on leading cryptocurrency exchanges. Pairings with Bitcoin (BTC), Wrapped Ether (WETH), and stablecoins dominate trading activity, underscoring the token’s utility and demand. By fostering partnerships with institutional investors and retail users alike, Celsius has expanded its reach and solidified its reputation as a leader in crypto-based financial services.