Celsius Reported a doubling of its crypto holdings to $2.2 billion in the past six months in assets under management as we are reading more in today’s crypto news.
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 that we have today. Celsius more than doubled its net crypto holdings six months after the first surpassing of $1 billion in June. 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.
Record high rewards this week AND record total assets now reaching $2.2 billion!
— Celsius (@CelsiusNetwork) November 9, 2020
The platform now offers a centralized alternative to decentralized finance dubbed “CeFi” by much of the crypto community. 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 and in the announcement, the CEO and founder Alex Mashkinsky described the success of the company as proving that “interest income is the new killer app for crypto:
“We have created more income for our customers than anyone else in DeFi or CeFi, and we have no plans on slowing down any time soon.”
Mashinsky made headlines after gifting his wife 15 million CEL tokens that were worth about $20 million for her birthday. He remained the single biggest CEL holder despite the hefty present while the wife is now CEL’s fourth-biggest whale. Celsius raised $20 million from about 1000 investors in equity raise hosted by crypto platform BNKToThefuture which drew more speculation regarding the company’s solvency. Over the past weekend, the rival crypto lending service CRED filed for bankruptcy after listing liabilities of up to ten times its assets, leaving the users uncertain as to whether they will be able to recover the funds from the platform.
As previously reported, Celsius Network is a crypto storage and finance app which lowered the minimum loan threshold to $500 and now offers crypto-backed loans to customers at annual interest rates that start with 1%. The Celsius Crypto Lender made it easier to borrow crypto-backed loans by lowering down the threshold from $1000 to $500. With no origination fee and quick approvals, Celsius believes that the limit will make it easier for the customers to borrow what they need without going overboard which will continue efficient lending markets and will help certain borrowers to pay less in the long-term.
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