The controversial stablecoin company Tether has just invested $10 million in the crypto lending network Celsius in the first equity financing round, as we are reading more in the upcoming Tether news.
Celsius network has received $10 million from the stablecoin company Tether LTD in the first equity round. The investment will not give Tether a controlling influence over Celsius’ network operations as the users can still earn competitive interest in tEther gold deposits and Tether as well. The Stablecoin company Tether LTD has invested $10 million in Celsius Network’s first equity financing round which raised $30 million. Celsius Network allows the users to borrow cryptocurrencies or to earn interest while Tether is the largest stable coin on the crypto market with a stunning market cap of $9 billion. The CEO of Celsius Alex Mashinsky considers the support from Tether a good sign for the company:
“The fact that they chose Celsius is very important because obviously they could have worked with anyone.”
Tether’s investment will be used to fund the lending and borrowing platform to grow even more by helping it grow the community and to expand the institutional services according to a press release. Critics are concerned that Tether’s nature could even allow the company to exert more pressure on Celsius and compromise the lending company’s mission. Big shareholders such as Tether could vote to take come in the platform’s profits at the expense of Celsius users who get up to 80% of the company’s profits. However, the platform refused to give Tether and other investors seats on the board meaning that the companies will have limited control over the lending and borrowing platform. The company remains the largest shareholder and will have full control of the lending platform.
Also the refferal reward has been incrised to 20$, so invite your friends
— Crypto Stewie (@CryptoStewiee) June 22, 2020
By remaining independent, Celsius will be able to keep its own profit margins low as it allocated 80% of the revenue to its users which are distributed as higher interest rates on crypto deposits. Celsius Network is one of the few DeFi services that allow users to borrow and lend cryptocurrency. Competing platforms such as Nexo, Crypto.com, and BlockFi are also evolving while Tether collaborated with Aave which means that the partnership made with Celsius is not an exclusive one. Many DeFi platforms list Tether no matter of the previous partnerships.
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