Alex Mashinsky Of Celsius Announced Self-Insurance For All Users

Alex Mashinsky of Celsius has just announced a self-insurance service for all users’ funds in order to protect them from unforeseeable losses as we are reading more in our latest cryptocurrency news.

Alex Mashinsky of Celsius tweeted:

 “You asked for it and we listened. We will be launching a self-insurance plan for all @CelsiusNetwork users that will cover all your coins, it will take us a few months but it will insure coins lent out to institutions and exchanges. No one else has such insurance today.”

Self-insurance is a risk management method where one company or a person decides against using third-party insurance companies so to do this, the entity sets aside a certain pool of funds that will be used in case of an emergency and without having to pay any extras. In Celsius’s case, it means that the platform will gradually accumulate funds that will be used to cover unexpected losses that are likely to affect its users.

Mashinsky didn’t explain which losses are considered “insured” but hack attacks are the main example of an emergency that will be covered by insurance as there are many other risks associated with crypto. Launched back in 2018, Celsius Network allows users to earn yields on their crypto deposits and various other services like loans and wallet-style payments. Apart from being utilized in an array of internal functions, the native token of Celsius CEL, can boost users’ yields if they pay with it for a certain product or service. Over the past 30 days, CEL’s price dropped from $6 to $4 but has stabilized at $5 since then.

CEL token is no joke – come to Celsius and earn 10.5% on your $ toilet paper or 6.2% on your golden BTC when depositing. use code Web40 to get an extra $40 from @celsiusnetwork as a special thank you for leaving Fiatland and joining Cryptoland. https://t.co/5ZdYSHEDUH

— Alex Mashinsky ©️ (@Mashinsky) February 7, 2021

As reported previously, Crypto lending and borrowing platform Celsius reported that it now holds more than $2.2 billion in digital assets under management according to a press release. Celsius more than doubled its net crypto holdings six months after the first surpassing of $1 billion in June, 2020. The platform attracted more than 215,000 total users across the world in total. Excluding its AUM, Celsius’s balance sheet now includes the native CEL tokens as well as cash that are worth more than $680 million. The crypto assets deposited on the platform are lent to exchanges and market-makers with about 80% of interest generated by distributing to depositors. Since launching in 2018, Celsius claims to have paid more than $80 million in rewards to the deposits.