Celsius

Halal Rating :
Uncomfortable
Last Price $0.14 Last updated:
Rank 1336
1D Change -1.26 %
Market Cap $5.44m
Circulating supply 37,720,111
Maximum supply None

Crypto Overview

Categories
  • Ethereum Ecosystem
  • Solana Ecosystem
  • Lending & Borrowing
  • Exnetwork Capital Portfolio
  • Gnosis Chain Ecosystem

Overview

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. In July 2022, Celsius Network filed for Chapter 11 bankruptcy protection after freezing user withdrawals.

Purpose and Utility

The CEL token was designed to provide utility within the Celsius ecosystem, including: earning higher yields on deposits, receiving better loan terms, and participating in platform governance. Users could earn weekly rewards paid in CEL tokens.

Business Model Analysis

The core business model revolved around crypto lending and borrowing for profit, which is not compliant with Islamic finance principles as it involves riba (interest). The platform engaged in risky trading and rehypothecation of user deposits.

Current Status

Following the bankruptcy filing, the SEC charged Celsius Network and its former CEO Alex Mashinsky with fraud in July 2023. The platform was accused of operating like a Ponzi scheme, using new deposits to fund withdrawals and interest payments. Trading of CEL tokens continues on some exchanges but the token has no current utility as the platform is defunct.

Token Distribution

A significant portion of tokens were held by the founding team and the company treasury. There were concerns about insider trading and manipulation of the CEL token price by company executives.

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