Celsius
Crypto Overview
Overview
The Celsius Network was a centralized cryptocurrency lending platform that allowed users to earn interest on deposited crypto assets and take out crypto-backed loans. The CEL token was the native utility token of the platform, offering rewards and discounts on the platform's services.
Intended Utility
The CEL token was designed to provide utility within the Celsius ecosystem by: offering higher yields for holders, providing discounts on loan interest payments, and serving as a loyalty/rewards token for platform users.
Current Status
As of July 2022, Celsius Network filed for Chapter 11 bankruptcy protection after freezing user withdrawals. The company's founder, Alex Mashinsky, was arrested in July 2023 and charged with fraud by U.S. authorities. The platform has permanently ceased operations.
Token Distribution and Governance
The initial token distribution heavily favored the founding team and early investors. The company maintained centralized control over all operations and token utilities.
Business Model Analysis
The core business model relied on crypto lending and borrowing activities, with interest being a fundamental component of operations. The platform engaged in risky trading strategies with user funds and operated more like a traditional financial institution than a decentralized protocol.
Crypto Impact
To assign a comfort level investing in Celsius from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Celsius.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.