What Is Celo (CELO) How It Works & Where To Buy It?

Celo is an innovative blockchain project that aims to improve existing payment solutions in global communities.

Celo prioritizes making crypto payments as streamlined and affordable as possible, while increasing mass adoption of crypto at the same time.

CELO is the native token of the project – CELO is currently the 77th largest cryptocurrency by market capitalization.

How Celo (CELO) Works

The innovative blockchain project has incorporated a simple crypto payments solution that is devoid of complex addresses and processes that typically hinder user adoption.

From a technical perspective, Celo’s improved functionality can be attributed to its Go implementation of Ethereum. Celo uses an energy-efficient proof-of-stake consensus mechanism to achieve an optimized network.

This consensus algorithm relies on validators and nodes which are tasked with the verification of transactions and securing the network.

Becoming a Celo validator is much less cost-intensive than becoming an Ethereum validator, which typically costs 32 ETH ($64,000).

Celo’s system is unique, in that Celo removes the complexities of crypto addresses and tedious processes, and instead, streamlines the process by allowing users to send crypto using by using mobile phone numbers.

Celo facilitates these processes mainly through its Celo App but payments can even be made via WhatsApp. This novel payment system allows users which aren’t knowledgeable in crypto to participate and benefit from simple payment solutions.

Essentially, after a user has created a Celo account, they will then link their cellphone number to a relevant address. In the back-end, a cryptographic hash of their cellphone number is then stored on the blockchain.

Additionally, when users want to make a payment using the Celo app, they can select the most affordable full-node in their specific area to do so. This gives the project an incredibly lucrative and efficient value proponent.

Full nodes are able to select the minimum transaction fee that they will accept – this encourages competition among nodes and results in the user receiving the most affordable and competitive rates.

Users can also opt to run a full-node because it is more affordable than other projects, and provides users with a simple way to earn rewards. Nodes can be run directly from a user’s computer.

Validators perform a more intensive role in the Celo ecosystem because they make up the third tier – the number of validators is also restricted to maximize network efficiency and security. Validators are tasked with maintaining various components of the network including software upgrades and protocol changes.

Celo validators also possess governance rights in the Celo protocol – this allows them to vote on certain proposals that affect the Celo network. Much like other protocols, validators who don’t operate in the best interests of the protocol are penalized.

Additionally, individuals can refer to the Celo whitepaper for a more in-depth overview of the project’s aims and functionality.

What Is Celo (CELO) Used For?

Celo is an innovative app that users utilize to make crypto payments. Users can simply set up an account using their mobile number, sequentially, they’ll receive SMSs that will facilitate the verification of their account and sync their number with the Celo app.

Individuals are also able to connect multiple numbers with the app, making this a lucrative platform for both individuals and businesses that require these processes. Transaction fees on the app are also minimal which is one of the advantages when using the Celo app.

There is a small fee charged for the verification of a phone number – users then receive Celo dollars which they can use to experiment on the testnet. Additionally, there is a faucet that can be used by developers and early adopters who want to fund their Celo accounts. It should be noted that these tokens don’t hold real value and are only testnet tokens.

The project has attracted the likes of major venture capitalists including the likes of a16z, Coinbase ventures, and other notable investors who have contributed more than $36 million to the project.

A large portion of the funding that Celo has received will be used for community grants and to generate more value in the Celo ecosystem.

Additionally, CELO tokens are frequently traded on various cryptocurrency exchanges. The price fluctuations of the cryptocurrency make it favorable to swing and arbitrage trade CELO tokens.

Where To Buy Celo (CELO) Tokens

CELO tokens are traded on most reputable cryptocurrency exchanges. Celo is often referred to as the “Whatsapp of payment solutions” and has already amassed a large community of users and investors.

Before purchasing CELO tokens, users will need to deposit fiat money onto an exchange, sequentially, CELO tokens will be credited to their relevant CELO digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store CELO tokens.

• Gate.io
• HTX
• KuCoin
• Binance
• Crypto.com

It is advised that users store their tokens in a credible wallet – storing tokens on an exchange can often be risky because users don’t have access to their private keys.

Most individuals choose to store their tokens in a digital wallet like Trust Wallet or MetaMask. Other individuals prefer storing their tokens in an even more secure hardware wallet.

About Celo (CELO)

How long has Celo (CELO) existed?

The CELO initial coin offering (ICO) took place on the 11th of May, 2020. The ICO managed to raise more than $6 million and the initial coin price was 1 CELO = 1 USD. The CELO token has performed well since its ICO and is currently trading at more than the ICO price.

The team behind Celo consists of Sep Kamvar, Rene Reinsberg, and Marek Olszewski. All of the co-founders are renowned figures – Reinsberg and Olszewski sold their AI startup to GoDaddy.

What’s controversial about Celo (CELO)?

Individuals should always do as much research as possible before investing in any crypto project. Key research areas should include the project’s founders, the tokenomics of the project, major partnerships, the whitepaper, as well as any other important factors surrounding the project.

Let’s take a look at the top controversy surrounding Celo (CELO):

• Competition – Celo’s app, Valora, has managed to onboard more than 50,000 monthly users to date. The platform continues to show positive growth but still has a relatively small user base when compared to other blockchain projects.

  The blockchain space is incredibly competitive and emerging projects like Celo face numerous struggles when trying to bolster user adoption. There are several credible and successful projects that offer similar solutions to Celo, many of which already have millions of monthly users.

How many Celo (CELO) Tokens tokens are there?

At the time of writing, Celo (CELO) has a circulating supply of 445,012,828.00 CELO (45% of the total supply).

The total supply of Celo (CELO) is 1,000,000,000.

The max supply of Celo (CELO) is 1,000,000,000.

Can Celo (CELO) be mined?

Celo (CELO) is not a mineable cryptocurrency. Celo uses a proof-of-stake consensus algorithm which means that CELO tokens can’t be mined in the traditional sense. However, it is still possible to earn CELO token rewards by becoming a full-node – nodes are rewarded in tokens for their network contributions.

Many websites claim to offer CELO mining services – sites like unmineable.com post bids on advertisements for ”CELO mining” but in reality, these sites aren’t able to deliver on their claims.

Additionally, there are a few centralized exchanges that also offer staking rewards for CELO holders that stake their tokens for a certain duration.

What is the market cap of Celo (CELO)?

The market cap of Celo (CELO) is: total amount of coins in circulation x current market price of CELO.

Celo (CELO) Market Cap = 445,012,828.00 CELO x $1,32 = $585 million (77th largest market cap).

CELO has maintained a spot on the list of the top 100 cryptocurrencies by market capitalization – the CELO price is currently trading at more than 5x below its September 2021 all-time high of $7,63.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Celo (CELO)

Celo has a host of competitors across the traditional financial sector and the blockchain payment solutions sector.

Celo’s biggest competitors are:

• Stripe
• Stellar
• Ripple
• Diem
• Venmo

What Are The Future Plans For Celo (CELO)

Celo is predominantly focused on creating more value for the project’s ecosystem and onboarding more users to its applications. Additionally, Celo is gaining traction for its native stablecoin, cUSD, which has recently been listed on HTX Global (one of the world’s largest cryptocurrency exchanges).

Pros And Cons Of Celo (CELO)

Pros:

• Simplified crypto payments – The Celo foundation has continued to support the growth and innovation of the Celo network. The recent growth of the crypto payments solution highlights the interest in digital currencies. Users are able to use their mobile phones, link their mobile numbers, and start facilitating payments – what makes Celo work so efficiently is its user experience and simplicity. Celo utilizes public keys to optimize how crypto payments are processed.
• Decentralized stablecoin – Celo’s network relies on two tokens: CELO (governance token) and the Celo dollar (stablecoin). The price stability of the Celo dollar makes sending payments less risky and more viable than making payments in other volatile cryptocurrencies. It should be noted that, typically, stablecoins are backed by fiat currencies but Celo implements another system to maintain the cUSD peg to the dollar.

Cons:

• Competitors – Utilizing digital assets for payment solutions has grown significantly in popularity over recent years. There has been a surge in decentralized applications that can facilitate crypto payments in a secure and cost-effective way, therefore Celo is competing with projects that have already amassed millions of users.