★ Company OverviewCelsius
Network (full company name: Celsius Network LLC) is a cryptocurrency financial services company founded in 2017 and headquartered in Hoboken, New Jersey, USA. The Company provides lending and interest income services for cryptocurrencies through its platform, where users can deposit crypto assets to earn interest, or borrow against crypto assets. Celsius Network's mission is to provide financial freedom to users around the world through blockchain technology, and the platform claims to return 80% of revenue to users. As of May 2022, Celsius Network has nearly $12 billion in assets under management and has made more than $8 billion in loans to customers. Key executives of the company include Alex Mashinsky, co-founder and CEO, and S. Mashinsky, co-founder. Daniel Leon and Nuke Goldstein. Details of the registered capital, advisory team, membership of industry associations, corporate structure and shareholding structure are not disclosed in the public information.
★ Regulatory InformationCelsius
Network, as a cryptocurrency financial services company, may be subject to financial regulation in the United States and other jurisdictions as its business involves the lending and interest payment of crypto assets. In September 2021, regulators in several U.S. states said Celsius Network's interest accounts constituted an unregistered offering of securities. The New Jersey Attorney General issued a cease and desist order requiring Celsius Network to stop issuing interest-bearing crypto products. Texas regulators are also seeking hearings in February 2022 to take similar action. Kentucky's securities regulator has asked Celsius Network to stop offering its interest accounts in the state. Celsius Network chief executive officer Alex Mashinsky said the company is "very confident" that its products in the U.S. are not securities and said it is working with U.S. states to clarify its business operations. As of 2023, Celsius Network has not publicly disclosed any specific regulatory licenses or numbers.
★
The main "trading products" of Celsius Network include:
Cryptocurrency deposits: Users can deposit crypto assets such as Bitcoin and Ethereum into Celsius Wallet to earn interest. The interest rate depends on the type of cryptocurrency deposited, for example, Bitcoin can have an annualized yield of up to 6.2%.
Crypto lending: Users can borrow USD or stablecoins against crypto assets at interest rates ranging from 0% to 8.95%, depending on the loan-to-value ratio (LTV, i.e., the ratio of the loan amount to the value of the collateral).
CEL Token: Celsius Network has issued its own token, CEL, which allows users to earn higher interest or lower loan rates by holding CEL tokens.
These products are primarily aimed at individual investors and institutional clients, especially those who want to earn passive income from crypto assets or who need liquidity. As of May 2022, Celsius Network has disbursed more than $8 billion in loans to customers.
★ The trading software
Celsius Network provides services through its mobile application and web platform through which users can deposit, borrow, and trade crypto assets. The app supports a variety of features, including:
Asset management: Users can view and manage their crypto asset portfolio.
Interest calculation: The platform automatically calculates and pays weekly interest.
Lending services: Users can apply for and manage crypto-asset mortgages.
As of 2023, Celsius Network's app is widely used around the world and has a certain influence in the cryptocurrency community in particular.
★ Customer SupportCelsius
Network's customer support information is not detailed in the public profile. As a financial services company, it may provide services to users via email, social media, or in-app support channels. As of 2023, the specific support methods or service processes are not described in detail.
★ Core Business & Services
Celsius Network's core business is to provide cryptocurrency lending and interest income services to individual investors, institutional clients and high-net-worth individuals. Its main services include:
Earn interest on cryptocurrency deposits: Users deposit crypto assets, and the platform pays interest.
Crypto-collateralized lending: Users borrow fiat currencies or stablecoins against crypto assets as collateral.
CEL Token Ecosystem: Incentivize users to participate in platform activities through CEL tokens.
Celsius Network's community-centric operating model claims to return 80% of revenue to users, which is unique among crypto lending platforms. As of May 2022, the platform has nearly $12 billion in assets under management, demonstrating its scale in the market.
★ Technology
InfrastructureCelsius Network's technology infrastructure is based on blockchain technology and supports its lending and interest payment services. The platform utilizes smart contracts and decentralized technology to ensure the transparency and security of transactions. Specific technical details, such as the blockchain protocol or server architecture used, are not disclosed in public information. As of 2023, the platform's technical infrastructure has supported the service needs of millions of users around the world.
★ Compliance and Risk Control SystemCelsius
Network's compliance and risk control system information is not clearly stated in the public information. As a cryptocurrency financial services company, it may implement compliance policies and risk management measures to protect user assets and comply with relevant regulations. However, in June 2022, Celsius Network suspended all transfers and withdrawals due to "extreme market conditions", causing Bitcoin and other cryptocurrencies to fall sharply. On July 13, 2022, Celsius Network filed for Chapter 11 bankruptcy protection, demonstrating significant challenges in its risk management. As of 2023, no detailed disclosure of specific compliance policies or risk management mechanisms has been made.
★ Market Positioning & Competitive AdvantageCelsius
Network's market positioning is to be the world's leading cryptocurrency lending and interest income platform, attracting users by offering high-interest and low-cost loans. Its competitive advantages include:
Community-oriented: 80% of revenue is returned to users, enhancing user loyalty.
Diversified products: Support a variety of crypto assets and lending options.
Technical support: Convenient service through mobile app.
As of May 2022, Celsius Network has nearly $12 billion in assets under management, demonstrating its competitive position in the market. However, the bankruptcy in 2022 had a serious impact on its reputation in the market.
★ Customer Support & EmpowermentCelsius
Network provides users with crypto asset management and trading services through its platform, and may help users understand and utilize crypto financial services through educational resources, community events, or technical support. As of 2023, specific enablement projects or support details have not been disclosed in public information.
★ Social Responsibility & ESG
Celsius Network's social responsibility and environmental, social, and governance (ESG) related information is not mentioned in publicly available materials. As a cryptocurrency company, it may demonstrate social responsibility by supporting financial inclusion or sustainable projects, but as of 2023, no specific practices have been documented.
★ The strategic cooperation ecosystem
Celsius Network has established strategic partnerships with a number of institutions, including:
Prime Trust: It used to provide crypto asset custody services for Celsius Network, but terminated the cooperation in June 2021.
Overstock.com: Participate in its blockchain securities issuance plan.
As of 2023, the names of specific partners or the details of the cooperation projects are not fully listed.
★ Financial health:
Celsius Network's financial health deteriorated dramatically in 2022. In June 2022, the company suspended all transfers and withdrawals, causing turmoil in the crypto market. On July 13, 2022, Celsius Network filed for Chapter 11 bankruptcy protection, showing that its financial position is extremely unstable. As of 2023, the Company's financial data is not disclosed in public information.
★ Roadmap for the future:
Celsius Network's future development plans became uncertain following the bankruptcy events in 2022. The company announced its exit from bankruptcy on January 31, 2024, distributed assets to creditors as part of a restructuring plan, and formed a new bitcoin mining company, Ionic Digital, Inc. As of 2023, the specific future development plans or timelines are not described in detail.
